EasyJet raises profits forecast as spring revenues soar
EasyJet has raised its profits forecast after soaring revenues in the spring, despite air traffic control strikes and the unusually hot weather dampening demand. Johan Lundgren, the airline’s CE, said costs from disruption had grown by GBP25m compared with the same period in 2017. Air traffic control strikes meant more than 2,600 flights were cancelled and left easyJet having to find 70,000 hotel rooms for stranded passengers. Lundgren said easyJet would make a legal complaint to the EC as it and other airlines, including IAG and Ryanair, seek a solution to the strikes, which are primarily French-based but affect overflying routes. EasyJet revenues nonetheless grew 14% to £1.6bn in the third quarter to 30 June, with ancillary revenues such as baggage up 21.1% to £328m, as it flew almost 10% more passengers. Lundgren said the heatwave and World Cup had dampened demand and would have an effect on the summer season. “We have taken into consideration slightly weaker late yields, for the quarter to come.” However, the airline said it anticipated higher annual profits of GBP550m-590m, as it unveiled the first in a fleet of bigger, quieter planes from Airbus.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-07-19/unaligned/easyjet-raises-profits-forecast-as-spring-revenues-soar
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EasyJet raises profits forecast as spring revenues soar
EasyJet has raised its profits forecast after soaring revenues in the spring, despite air traffic control strikes and the unusually hot weather dampening demand. Johan Lundgren, the airline’s CE, said costs from disruption had grown by GBP25m compared with the same period in 2017. Air traffic control strikes meant more than 2,600 flights were cancelled and left easyJet having to find 70,000 hotel rooms for stranded passengers. Lundgren said easyJet would make a legal complaint to the EC as it and other airlines, including IAG and Ryanair, seek a solution to the strikes, which are primarily French-based but affect overflying routes. EasyJet revenues nonetheless grew 14% to £1.6bn in the third quarter to 30 June, with ancillary revenues such as baggage up 21.1% to £328m, as it flew almost 10% more passengers. Lundgren said the heatwave and World Cup had dampened demand and would have an effect on the summer season. “We have taken into consideration slightly weaker late yields, for the quarter to come.” However, the airline said it anticipated higher annual profits of GBP550m-590m, as it unveiled the first in a fleet of bigger, quieter planes from Airbus.<br/>
