Easyjet to see profits surge despite strike action impact

0 The budget airline is tipped to highlight a strong rise in profits when it reports results this week

Easyjet is this week expected to reveal annual profits have surged by up to 42 per cent as the budget carrier brushed off strike action and gained from the troubles of its rivals.

Analysts at Numis forecast the airline to report a profit of £575 million for its latest financial year compared to the £408m it achieved the previous year. Revenue is expected to rise to around £5.9 billion from £5.05bn.

Graham Spooner, investment research analyst at The Share Centre, said investors

will also be looking out for comments on fuel costs and the company’s recent expression of interest in troubled Italian airline Alitalia.

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.

Easyjet is also considering making a bid for rival Flybe, which recently put itself up for sale as it struggles with high oil prices.