Publications
Partners
London - British budget airline easyJet said losses in the quieter winter season would shrink this year, helped by a lower fuel bill and flying more planes on popular routes such as London to Geneva.
Europe's second-largest budget airline by passengers after Ryanair said it expected losses of between £10m and £30m for the six months to the end of March, down from a loss of £53m last year.
"We further strengthened our network in the quarter adding around 500 000 seats, the majority of which are from airports where easyJet has a number one or number two position," chief executive Carolyn McCall said on Tuesday.
A 50% fall in the price of crude oil over the last six months is cutting jet fuel costs for airlines, though they do not typically receive the full benefit of lower prices because they hedge to smooth out fluctuations.
EasyJet said its jet fuel bill will be between £30m and £35m lower in its first half compared with a previous forecast of £12m to £22m lower.
Its fuel bill for the full year, which was £1.25bn last year, would shrink by £90m to £130m, it said, adding that passengers would see fares fall as a result.
Shares rise
The airline said it saw strong trading in October, particularly from Britons flying to catch some sun before the winter months at home, helping revenue per seat rise 3.7% in its first quarter to the end of December.
The carrier also upgraded its forecast for growth in revenue per seat for the first half to 2% from flat previously.
Shares in easyJet rose to a nine-month high as analysts said the outlook was better than expected.
Trevor Green, head of equities at Aviva Investors, said the improved outlook for revenue per seat was encouraging.
"It is a better quality reason for forecasts to move upwards than just on benefits of lower fuel prices," he said.
The stock was trading up 3.5% at 1 817 pence at 13:20, topping the FTSE 100 index.
"EasyJet is trading well and in the second half should start to see the benefit of recent expansion of capacity at London Gatwick," said Robin Byde at Cantor Fitzgerald.
The company, which like rivals such as Ryanair tends to make a loss over the winter season when fewer customers fly, posted sales in the quarter of £931m, up 3.8%.
