Shares in easyJet (LON:EZJ) have fallen deep into the red in today’s session, even as the low-cost carrier delivered a rise in profits. The company further noted that it had seen ‘solid demand’ in forward bookings, despite Brexit uncertainty.
As of 08:37 GMT, easyJet’s share price had given up 2.34 percent to 1,147.50p. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.33 percent lower at 6,977.99 points.
easyJet posts full-year results
easyJet announced in a statement this morning that its headline profit for the year ended September 30 had come in at £578 million, up £170 million or 41.4 percent. The blue-chip airline had previous forecast profits of between £570 million and £580 million. The low-cost carrier posted a record number of passengers flown at 88.5 million up 10.2 percent with a record load factor of 92.9 percent.
easyJet proposed a dividend of 58.6 pence, marking an increase of 43 percent on the prior year’s 40.9p.
“easyJet has delivered a great performance during the year,” the group’s chief executive Johan Lundgren commented in the statement, adding that while disruption remained “a major challenge for the industry, we are investing in resilience to help to mitigate the impact on our customers”.
The low-cost carrier further noted that it had seen ‘solid demand’ in forward bookings of 50 percent for the first half of the new financial year, while cautioning that its revenue per seat at constant currency for the first half was expected to be down by low to mid-single digits.
Analysts weigh in on update
Bloomberg quoted Bernstein analyst Daniel Roeska as saying in a note that the outlook for easyJet’s fiscal 2019 “continues to look challenging with increasing fuel headwinds, flat ex-fuel unit costs and pressure on first-half yields”.