25th Mar 2014 08:28
LONDON (Alliance News) - Shares in low-cost airline easyJet PLC have soared Tuesday after the company said it expects its pretax loss for the first-half to be lower than previous expectations and boosted forecasted revenue per seat growth, after revising figures announced in January due to the timing of Easter.
The FTSE 100-listed company was leading the blue-chip index after it said it now expects to deliver a first half performance ahead of the guidance given in its interim management statement on January 23, when easyJet said it expected its pretax loss for the half-year to come in between GBP70 million and GBP90 million.
easyJet's revised expectations state that the firm now expects a narrowed pre-tax loss of GBP55 million - GBP65 million, compared to the GBP61 million pretax loss the previous year for the six months to March 31, 2014.
The revisions have been made in part due to the timing of Easter; last year Easter fell on March 31, resulting in GBP25 million of additional revenue in the first-half of 2013. In this financial year Easter will fall in its second-half on 20 April.
Revenue per seat growth at constant currency for the six months to March 31 is expected to be around 1.5%, said easyJet, driven partly by allocated seating, increased average sector length and several digital and revenue management initiatives. Previously the company said the metric would be "Very slightly up."
Cost per seat growth, excluding fuel, at constant currency is expected to be around 0.5%, better than the forecast 1.5% growth announced in January. This is due to a benign winter with reduced levels of de-icing and disruption in the three months to March 31 as well as the early delivery of a number of easyJet lean initiatives, said the company.
easyJet's unit fuel cost in the six months will be up to GBP8 million pounds adverse to the prior year. The impact of exchange rate movements will be broadly neutral compared to last year. The company's forecast for capacity growth for the first-half of the year remains unchanged at around 3.5%.
"easyJet has continued to execute its strategy delivering another good performance in the first half of the year. This performance demonstrates our continued focus on cost and progress against all our strategic priorities. It also demonstrates easyJet's structural advantage in the European short-haul market against both the legacy and low-cost competition. Our strategy of offering our customers low fares to great destinations with friendly service and a focus on cost control ensures that we can continue to deliver sustainable growth and returns for our shareholders," Carolyn McCall, easyJet's Chief Executive said.
Shares in the airline were leading the FTSE 100 in early trading, up 4.66% at 1,707 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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