easyJet to see profits take off as focus shifts to guidance

The airline is on a roll and is understood to be eyeing up Flybe
The airline is on a roll and is understood to be eyeing up Flybe

EasyJet is to reveal annual profits surging by up to 42% on Tuesday with the low budget airline brushing off strike action and gaining from the troubles beset by rivals.

The focus for the new financial year however will be on guidance rather than earnings.

The carrier recently said it expects full-year pre-tax profit to be between £570 million and £580m, on revenue of around £5.9 billion.

It comes despite strike chaos that caused the firm to cancel thousands of flights over the summer as a result of air traffic control industrial action in France and Italy.

Numis forecasts easyJet to report a profit of £575m against a profit of £408m the previous year, on revenue of £5.05bn.

EasyJet also expects to book a £115m loss from its operations at Berlin Tegel Airport in Germany.

Shares have fallen by more than a third (34%) over the past six months.

In September, easyJet indicated revenue per seat for the first half of 2018-19 will decrease by low to mid-single digits on a constant currency basis after 2017-18 saw it benefit from the bankruptcies of Monarch and Air Berlin, as well as the grounding of Ryanair aircraft.

Last month, the company submitted a revised bid in response to the new Italian government’s sales process for Alitalia, which was placed into special administration last year.