EasyJet ready to check in with soaring profits this week

Budget carrier, which flies to 32 destinations out of Liverpool John Lennon Airport, is expected to report a 40% rise in pre-tax profits to around £580m on Tuesday. Tony McDonough reports

easyJet
Budget carrier easyJet is set to report soaring profits on Tuesday Picture by Tim Anderson

 

Low-cost airline easyJet will reveal soaring profits and revenues this week when it reports its full-year results.

The carrier, which flies to 32 destinations out of Liverpool John Lennon Airport, unveils its figures for the year to September 30 on Tuesday with analysts expecting pre-tax profits of up to £580m – 40% higher than last year and from revenues of almost £6bn.

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EasyJet is prospering while its rivals flounder. It benefited from the collapse of both Monarch and Air Berlin last year while struggling Flybe is now seeking a buyer as it stares down the barrel of projected losses of more than £20m.

Ryanair, easyJet’s main European rival and also a major presence at Liverpool, is also suffering significant turbulence. While still very profitable, the Irish carrier has endured a year of industrial disputes and rising oil prices and saw a fall in its latest half-year profits.

And it has not been all plain sailing for easyJet, despite the rise in profits. It’s share price fell during the summer months amid higher oil prices and fears over the impact of Brexit next year.

Passenger numbers for the full year are expected to increase by 5.4% to 84.6m, driven by an expected increase in capacity of 4.2% to 90.3m seats. Load factor (percentage of seats filled) for the full year is expected to increase by one percentage point to 93.6%.

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EasyJet’s total fuel cost for full year 2018 is expected to be just under £1.2bn, including an expected additional £15m cost compared to previous guidance as a result of a US dollar foreign exchange impact and carbon Emissions Trading System (ETS) costs.

The airline has continued to add routes to countries such as Turkey, Sicily and Croatia out of LJLA and earlier this year based it eight aircraft at the airport. A new route to Toulouse in France took off on October 28.

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