EasyJet ups profit forecast despite travel disruption

19 July, 2018 12:00 AM printer

LONDON: EasyJet expects full-year profit to be higher than expected as increased passenger numbers offsets disruption from striking air traffic controllers and bad weather, the British no-frills airline said on Wednesday.

EasyJet and European rivals have been hit in particular by striking French air traffic controllers, reports AFP.

Alongside Wednesday’s earnings update, chief executive Johan Lundgren told reporters that EasyJet would be filing a legal complaint to the European Commission over the strikes, “most likely next week”.

This follows similar action by Ryanair and IAG, owner of British Airways and Iberia — while the European Union has vowed not to limit air traffic controllers’ right to strike. For its full-year ending in September, EasyJet said it expects pre-tax profit of between o550 million ($719 million, 618 million euros) and o590 million. This compares to a previous guidance of between o530 million and o580 million. In reaction, EasyJet’s share price rose almost three percent in early deals.

“With EasyJet on track for a positive summer trading period during the fourth quarter, we are raising our guidance for full year headline profit before tax for financial year 2018 to between o550 million and o590 million,” Lundgren said in an earnings statement.