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London - British low cost carrier easyJet upgraded first-half forecasts, saying favourable currency moves would boost its bottom line, but said if current exchange rates stuck, they would provide a reverse effect over the year.
The group, which like rivals traditionally makes a loss over the winter when fewer customers fly, said on Thursday that it could swing to a profit for the six months to March 31, a significant improvement on last year.
"easyJet continues to be well positioned to deliver sustainable returns to shareholders due to its compelling network, low cost base and strong balance sheet," chief executive Carolyn McCall said in a statement.
The company, Europe's No. 2 low-cost carrier behind Ryanair , said it expected to report between a loss of £5m and a profit of £10m for its first-half, compared to guidance given in January for a loss of between £10m and £30m.
That compares to the £53m loss it reported in the same period last year.
The weakening of the euro against the pound was the main boost to its bottom line in the second quarter, it said.
It warned, however, that if those same exchange rates were maintained across the full-year period, there would be a £20m adverse impact due to swing in costs and revenues received in pounds and euros at different times of the year.
easyJet also maintained its plan to grow capacity by 5% over the current financial year, even as it faces renewed competition from its Irish rival Ryanair after it improved its customer service and started adding more main city airports to its routes.
It is due to publish its first-half results on May 12.
