Shares in easyJet (LON:EZJ) have gained altitude in London this morning, ahead of the airline’s full-year results due out tomorrow. The statement will come as the company’s chief executive Carolyn McCall prepares to step down, having accepted the top job at blue-chip broadcaster ITV (LON:ITV).
As of 10:17 GMT, easyJet’s share price had added 0.86 percent to 1,292.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.10 percent lower at 7,373.10 points. The group’s shares have added a little over a fifth to their value over the past year, and are up by some 28 percent in the year-to-date.
easyJet is scheduled to update investors on its full-year performance tomorrow and The Telegraph reports that Liberum transport analyst Gerald Khoo expects the airline to report adjusted pre-tax profits of £410 million for the financial year ended September 30, down a fifth as compared with the prior year. Consensus expectations, however, predict that earnings will recover in 2018 and 2019.
The results will come amid ongoing turbulence for the industry, which has seen the recent collapse of Monarch Airlines, and insolvency at Air Berlin and Alitalia. easyJet recently inked a deal to acquire part of the German carrier’s operations.
“With prices likely to remain under pressure from the intense competition, fuller planes mean lower costs per passenger,” Nicholas Hyett, analyst at Hargreaves Lansdown, commented, as quoted by The Sunday Times. “That’s key to maintaining profitability.”
Carolyn McCall steps down
Tomorrow’s update will come as chief executive Carolyn McCall prepares to step down after seven years at the helm of the low-cost carrier where she will be succeeded by former TUI Group (LON:TUI) executive Johan Lundgren.
City A.M. reports that McCall is expected to sign-off her tenure with a £5-million pay-off in shares and salary before starting at ITV on January 1.