Shares in easyJet (LON:EZJ) have fallen marginally into the red in London today, even as the blue-chip carrier signalled that it expects its annual profit to come in at the upper end of its guidance range. The low-cost airline has benefitted from industry turbulence and cancellations at low-cost rival Ryanair.
As of 10:32 BST, easyJet’s share price had given up 0.19 percent to 1,323.00p, largely in line with a fall in the broader London market, with the benchmark FTSE 100 index currently standing 0.16 percent lower at 7,533.30 points. The group’s shares have added more than 10 percent to their value over the past year, as compared with a near three-percent gain in the Footsie.
easyJet posts trading update
easyJet issued a trading update today, noting that it expects its full-year headline profit before tax to come in between £570 million and £580 million, at the top half of the group’s guidance range.
“easyJet expects to deliver a strong performance in both Q4 and the full year, driven by better-than-expected growth in passenger and ancillary revenues, as well as reduced losses at our Tegel operation,” the low-cost carrier’s chief executive Johan Lundgren commented in the statement, adding that while the group had been impacted by higher costs caused by disruption due to third party industrial action and severe weather, it had also benefitted from one-off events, including the bankruptcies of rivals Monarch and Air Berlin, as well as Ryanair cancellations.
New year guidance
Going forward, easyJet its capacity to grow by circa 10 percent to around 105 million seats in the year ending September 30, 2019. The group’s total reported fuel bill meanwhile is expected to come in at about £1.48 billion.