EasyJet forecasts profits rise

No-frills airline easyJet today said profits could rise by as much as 15% this year, despite the soaring cost of jet fuel.

EasyJet told London brokers to upgrade their forecasts to between £74.8m (€109m) and £78.2m (€108.2m) after first-half losses were not as hefty as expected, and it steered a smooth course through the key Easter holiday season.

Its ability to cut overheads by 6.2%, and encourage passengers to spend a third more on additional services, such as in-flight food, during the six months to March 30, helped to ease the pain from a fuel bill that was 49% higher than the corresponding period, at £55m (€80m).

Interim losses totalled £40m (€58m) before tax, which was £5m (€7.3m) better than forecast when the carrier last updated the market at the time of its annual meeting in February. EasyJet recorded annual profits of £68m (€99m) last year.

Chief executive Andrew Harrison said: “Our stronger-than-expected first-half performance and a good Easter provide the basis for an improved full-year outlook.

“We are conscious that we have a big summer ahead, that the price of oil remains a risk, and we continue to operate in a highly competitive environment.”