easyJet lifts first-half guidance

25th Mar 2014 07:05

- First-half guidance lifted- Pre-tax loss expected- Revenues to rise 1.5 per centeasyJet has raised its first-half guidance as the European airline worked to drive down costs.The carrier expects a pre-tax loss for the six months ended March 31st 2014 between £55m and £65m, compared with the previous guidance of a pre-tax loss of £70m to £90m. Last year the group made a pre-tax loss of £61m. Revenue per seat is projected to rise 1.5% at constant currency on the back of a 3.5% increase in capacity. The company said allocated seating, increased average sector length and a number of digital and revenue management initiatives boosted revenue. The timing of Easter in comparison to last year will affect results in the first half, the group added. Cost per seat growth excluding fuel at constant currency is expected to be up 0.5%, marking an improvement on guidance issued in January, driven by a benign winter with reduced levels of de-icing and disruption in the three months to March 31st.easyJet's unit fuel costs in the first half are forecast to be up to £8m adverse in comparison with the year earlier period. The impact of exchange rate movements, including those related to fuel, is predicted to be broadly neutral versus the same period of 2013. Chief Executive, Carolyn McCall, said: "This performance demonstrates our continued focus on cost and progress against all our strategic priorities. t also demonstrates easyJet's structural advantage in the European short-haul market against both the legacy and low-cost competition."Our strategy of offering our customers low fares to great destinations with friendly service and a focus on cost control ensures that we can continue to deliver sustainable growth and returns for our shareholders." RD