EasyJet lifts profit guidance as revenue rises

EasyJet PLC (EZJ.LN) said Wednesday that its third-quarter unit revenue increased despite the impact of an unusually large number of canceled flights in June, and raised its fiscal 2018 headline pretax profit guidance.

The budget airline said revenue per seat for the quarter ended June 30 rose 4.8% when stripping out exchange rate changes to 60.55 pounds ($79.85).

Total revenue for the period was GBP1.6 million, or GBP1.52 million excluding operations at Berlin’s Tegel airport, compared with GBP1.39 billion a year earlier.

The company said the increase was driven by a benign competitor environment, as the collapse of competitor Monarch left unfilled capacity and particularly strong trading in May due to the timing of public holidays.

EasyJet said it now expects headline pretax profit for the full fiscal year to be between GBP550 million and GBP590 million.

The company had previously guided for headline pretax profit for fiscal 2018 in the range of GBP530 million to GBP580 million.

EasyJet also said that, excluding Tegel operations, it expects capacity for the full year to rise 4.5% and headline cost per seat excluding fuel at constant currency to increase by about 3%, it said.

The company had said on July 5 that it canceled 1,263 flights in June, compared with 213 during the same month in 2017, mainly due to industrial action in France and Italy.

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