Easyjet anticipates at least 14% jump in annual profits - UPDATE

24th Jul 2014 08:58

Budget airline Easyjet has confirmed its full-year profit will rise at least 14%, in line with City forecasts. The group anticipates its profit before tax for the year to September 30th will come in at between £545m and £570m, up from £478m last year. That came after it posted an 8.6% rise in third quarter (Q3) revenue to £1,240m, driven by higher passenger numbers, an improved load factor and the timing of Easter. In the three months to the end of June, revenue per seat rose 2.7% on a constant currency basis, or 1.7% on a reported basis, to £62.47, despite a less benign capacity environment and a 16% increase in Easyjet capacity at Gatwick, which drove group capacity up by 6.8%. The total number of passengers carried during the period rose 9.4% to 17.9m, while the load factor increased by 2.2 percentage points to 90.4%. Chief Executive Carolyn McCall said: "Easyjet has again delivered a solid performance in the quarter [...] We will continue to invest in building leading network positions and this combined with a compelling customer proposition, low cost base and strong balance sheet leaves Easyjet well positioned to continue to deliver sustainable growth and returns."Net cash at the period-end totalled £603m. Marc Kimsey, Senior Trader at Accendo Markets, said: "Traders are snapping up shares at this morning's discounted price. The Q3 numbers are solid, the company remains on track to deliver analysts' expected full year profit - a 14% increase versus 2013. "Importantly traffic numbers have increased every month throughout 2014 with the busiest months of the year still to come. Easyjet remains the preferred carrier in its space and a firm favourite among the institutional investors."Shares fell 4.49% to 1,340p in opening trade. NR