easyJet share price takes off as airline hikes profit guidance

Budget carrier posts rise in third-quarter revenue

easyJet share price takes off as airline hikes profit guidance

Shares in easyJet (LON:EZJ) have jumped in London this morning as the airline updated investors on its third-quarter performance, delivering a rise in revenue. The company further said that it now expected its headline profit before tax for the full year to come in between £550 million and £590 million.

As of 08:44 BST, easyJet’s share price had added 2.84 percent to 1,699.50p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.50 percent higher at 7,664.13 points. The group’s shares have added a little over a fifth to their value over the past year, as compared with about a 3.8-percent gain in the Footsie.

easyJet posts Q3 results

easyJet announced in a statement this morning that its total revenue in the three months ended June 30 had climbed by 14 percent to £1.6 billion while ancillary revenue had increased by 21.1 percent to £328 million. Passenger numbers meanwhile rose by 9.3 percent during the reported period meanwhile surged by 9.3 percent to 24.4 million, driven by an increase in capacity of 8.9 percent to 26.2 million seats which was lower than originally planned due to disruption.

Earlier this month, the low-cost carrier reported that it had carried more passengers in June, while revealing a surge in cancellations amid industrial action in Italy and France.

“easyJet has delivered a strong performance during our third quarter driven by robust customer demand,” the group’s chief executive Johan Lundgren commented in the statement, adding that with the group was “on track for a positive summer trading period during the fourth quarter”.

Airline updates on outlook

easyJet expects capacity to grow by about 4.5 percent, while second-half revenue per seat at constant currency is expected to increase by low to mid-single digits.

The carrier’s headline profit before tax for the 12 months to September 30, including the Tegel headline loss, meanwhile is expected to be between £550 million and £590 million, up from previous guidance of between £530 million and £580 million.

As of 09:12 BST, Wednesday, 18 July, easyJet plc share price is 1,701.00p.

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