UK budget airline EasyJet said yesterday its prospects were improving, helped by cost cuts and sales of in-flight drinks and online insurance, lifting its shares despite a hefty fuel bill and a wider first-half loss.
EasyJet, Europe's second-largest budget carrier after Ryanair, said it now expects pretax profit growth of 10-15 per cent for the year compared with a previous outlook for mid- to high-single digit profit growth.
Analysts said this would suggest a full-year pretax profit of £90-£95 million (€131-€139 million). EasyJet posted a pretax loss of £40 million for the six months to the end of March compared with a £22 million loss previously.
EasyJet's fuel costs rose 68 per cent year-on-year to £166 million, equivalent to £9.14 a seat. The total included £12.5 million from more flights.
The firm, known for its bright orange planes, said ancillary items such as in-flight drinks and food, credit card booking fees, car hire, travel insurance and hotel rooms saw a 31 per cent half-year rise in sales.
