Easyjet Announces Rise To Full-Year Profit Targets

Today, Easyjet informed its investors that the company is expected to deliver strong headline profit in its full-year results. The announcement comes despite the warnings of a no-deal Brexit that will likely have a significant effect on the airline.

The firm said that before tax, the profit for the year was likely to come in between a range of £570 million and £580 million, which is in the upper half of the previous guidance.

Easyjet said that the passenger numbers for the full year were anticipated to rise by 5.4 percent to approximately 84.6 million. It said that it will be driven by an increase in the capacity to 90.3 million seats.

For the outlook of the company for the year ending September 2019, Easyjet said that the revenue per seat will possibly decline by low to mid-single digits.

Yesterday, Moody’s, a credit ratings agency, warned that Easyjet, together with Ryanair, are among a number of other airlines that were considered to most likely be at risk in a no-deal Brexit scenario.

However, it said that this plunge in revenue would be offset by one-off benefits this year which includes the bankruptcies of Air Berlin and Monarch, and the effect from flights that are being canceled by rival Ryanair during the Winter.

The announcement comes on the same day that a major Ryanair strike will result in the grounding of approximately 250 flights.

Johan Lundgren, the boss of Easyjet, stated: “We now expect our headline profits for the year to be between £570m and £580m, at the top half of our guidance range.”

He added: “This has been achieved despite higher costs caused by disruption due to third party industrial action and severe weather.”

He continued: “However, we have benefited from a number of one-off events in 2018, including the bankruptcies of Monarch and Air Berlin, as well as Ryanair cancellations.”