EasyJet cuts loss expectations and forecasts rising revenue
Budget airline EasyJet has slashed its expectations for a pre-tax loss in the six months to 31 March from between £70m and £90m to between £55m and £65m.
The company also expects a rise in revenue per seat of 1.5 per cent.
Analysts at Investec have taken kindly to the results upgrading EasyJet from "hold" to "buy" based on "adjusted forecasts and a more bullish outlook on the timing of cost efficiencies delivery."
Commenting on the pre-close statement, Carolyn McCall, easyJet's chief executive said:
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.
Earlier in the month, EasyJet reported a rise in passenger numbers of 2.9 per cent to 4.2m for February 2014.
The FTSE 100 company enjoyed an even greater rise in passenger numbers of 3.5 per cent to 61.5m for the 12 months ended February.
Part of the company's growing popularity is attributable to the success of its new system of seating allocation. EasyJet passengers now have the option to pay to choose their seats or have them allocated automatically, free of charge.
EasyJet also saw off a protest vote from founder Sir Stelios Haji-Ioannou at its annual meeting over 2013 pay plans, which saw boss Carolyn McCall paid £6.4m.