Low-cost airline easyJet cut its expectations for full-year profit due to the recent travel disruption caused by volcanic ash, though it posted a smaller-than-expected first-loss as fuel prices fell.
"Estimated full year pretax profit would have been in the range of £175 and £200 million at current exchange rates and fuel prices, prior to the recent volcanic ash related disruption," the company said this morning.
"This disruption has caused additional cost and lost contribution estimated at between £50 and £75 million. Therefore, the company has revised its profit expectations for the year to a range of £100 and £150 million at current exchange rates and fuel prices."
The airline, the biggest carrier at London's Gatwick airport, said its pre-tax loss narrowed by a third to £78.7 million on revenues 13 per cent higher at £1.17 billion for the six months to the end of March.
In January, easyJet said it expected to post a first-half pretax loss of between £80 million and £95 million.
EasyJet had been expected to report a first-half loss of around £92 million pounds but was also tipped to post a pretax profit of £177 million for the year to the end of September, according to a Thomson Reuters I/B/E/S poll of 17 analysts.
Shares in easyJet, which have risen a fifth this year, closed at 442 pence yesterday, valuing the business at around £1.9 billion.
Reuters