EasyJet leads a take-off for airline shares as it gains from rivals’ woes

AIRLINES led the charge today despite Brexit headwinds and volatile oil prices. It comes as the City prepares for some strong full-year easyJet numbers tomorrow, buoyed by the collapse of rivals Monarch and Air Berlin.

The low-cost airline is expected to report profits of between £570 million to £580 million, a significant gain from the £385 million it posted last year.

EasyJet shares have fallen more than a third since June with brokers cautious over the industry as the UK prepares to leave the European Union, but falls in oil prices have boosted the sector.

Analysts also said it has the edge over Ryanair, which has been hit hard by staff strikes and cancelled flights.

Ryanair chief executive Michael O’Leary has been scathing in his Brexit predictions, claiming last month that if the UK crashed out without a deal next April flights would be grounded and the Government would fall.

Today easyJet shares were up 17.5p to 1179p and British Airways-owner International Consolidated Airlines climbed 10.6p to 645p.

Other notable risers on the FTSE 100, which climbed 29.32 points to 7043.20, included Kingfisher after chief executive Véronique Laury said the firm was looking to sell six B&Q stores to raise cash for its turnaround plan.

Kingfisher is understood

to be attempting to raise £125 million by selling and leasing back B&Q stores in Birmingham, Croydon, Southampton and Cardiff, plus two in north-east England. Shares added 4.7p to 247.5p. There was also plenty of action further down the market as gas explorer Sound Energy tumbled 7.5p to 16.4p.

It failed to find gas at the first of three planned wells in Morocco. The well will be plugged and abandoned, meaning it only has two shots left to find gas.

Meanwhile oiler TomCo Energy has appointed new broker Turner Pope Investments after its previous broker SVS Capital quit last Friday.

The fallout between TomCo and SVS was over a recent £532,350 fundraising, which has now been terminated.

The company said it presently has cash resources of £250,000, which it believes will last it through to the end of the first quarter next year. Shares were up 1.2p at 6.6p.

But shares in Funding Circle fell 1.4p, to 357.4p despite it announcing it appointed Goldman Sachs and Numis as joint brokers.

Easy money: budget carrier easyJet primed to post profit gains to the City tomorrow RADIATION detection firm Kromek has won a $7.8 million (£6.1 million) contract from an X-ray imaging systems business in the baggage-security screening market. Kromek’s systems have been used in high-level security — this July, the Nato summit in Brussels used its detectors. Shares rose 1.5p to 24.7p.