EastJet maintains profits guidance

Budget airline easyJet stuck by recently improved profits forecasts today after seeing an 11% rise in passenger numbers during July.

The Luton-based carrier said it flew 3.2 million passengers on its routes last month, compared with 2.8 million during the same month last year.

The airline also reported third quarter revenues to June 30 lifted 34% to £460.2m (€682m), with total revenues per seat rising to £45.07 compared with £38.43 the previous year.

EasyJet said in July it expected profits to be 40% to 50% higher, against earlier guidance of 10% to 15% growth for the year to the end of September. It stuck by the forecast today, even though it said it expected to costs to be “slightly higher” than previous guidance.

It emerged last week that the firm was considering a franchise offer from Saudi-based National Air Services, which wants to launch low-fare flights around the Arabian Gulf.

During the last quarter easyJet started flying 19 new routes and announced a "significant expansion" of services from Gatwick, including a three times daily service to Glasgow.

It now operates 121 aircraft on 267 routes between 74 airports in 21 countries after entrepreneur Stelios Haji-Ioannou set up the airline in 1995.

The company said it had managed to widen its network by redeploying planes from underperforming routes.

The news comes after low-cost rival Ryanair said last week it had banked record quarterly profits despite spiralling fuel costs.

The Dublin-based firm said net profits for the three months to June 30 soared 80% to €115.7m after rising fares and passenger numbers boosted business.