Post-olympics surge for budget airline
PROFITS at low-cost airline easyJet have enjoyed a late flourish after Britons delayed their holiday plans until after the Olympic Games.
Disruption at London airports during the event had also been kept to a minimum, the company said, and it told investors that profits were now likely to be between £310 million and £320m in the year to September 30.
This is better than July’s upwardly revised guidance of between £280m and £300m, when the company said it was braced for a fall in demand for flights during the 2012 Games.
Luton-based easyJet said the post-Games pick-up was at the upper end of hopes, and that beach routes were particularly performing well.
Europe’s fourth-biggest shorthaul carrier now expects revenues per seat to improve by more than 5% in the financial year due to end, compared with the low-to-mid single digits forecast in July.
The company said: “There were very low levels of disruption through this critical summer period ensuring improved ontime performance and continued high levels of customer service.”
Steps to protect its performance during the Games included improved crew and control centre staffing levels and daily Olympics meetings.
Having absorbed an additional £230m in fuel costs during the financial year, easyJet warned it faced another rise of between £30m and £40m in the financial year about to start. Airport costs are also set to rise by £80m, reflecting charges at regulated airports in Spain and Italy.
Shares in easyJet were 3% higher yesterday.