EasyJet share price soars as revenue beats expectations
The figures
Revenue dropped at EasyJet in the second quarter, yet the turbulence was less severe than had been feared by the low cost airliner.
Read more: EasyJet strike could cause a new headache for budget airline
The better than expected results triggered a four per cent rise in EasyJet's share price in early trading.
Europeans' continued desire to hit the beach in May and June offset difficulties in the three months to 30 June which included the French air traffic control strike and a fire at Rome's Fiumicino airport.
Total revenue fell by one per cent to £1.22bn as revenue per seat dropped 5.4 per cent to £59.08.
However, capacity grew by 4.7 per cent to 20.8m seats, boosting the total number of passengers carried by 6.2 per cent to 19.1m.
Looking ahead, EasyJet forecasts full-year profit to come in between £620m and £660m.
Why it's interesting
The French air traffic controllers' strike in April which resulted in 591 cancellations and impacted pre-tax profit of £25m was "particularly disruptive" due to its extended nature and EasyJet's presence on French domestic routes.
Although EasyJet neglected to mention it in its optimistic forecast for the full year, a proposed strike from 2,000 of its cabin crew staff has the potential to put a similar dent in the company's wings.
A ballot for strike action over pay rises will close on 3 August, when EasyJet will discover if its late summer schedule – a crucial period for the company – will be affected.
What EasyJet said
Our quarter three performance shows that EasyJet's strategy continues to deliver, in particular with good performance in the UK and beach routes across Europe. With 77 per cent of second half seats now booked, EasyJet expects to grow profit before tax…to a range of £620m for the year. Our Q3 performance means that for the full year easyJet will grow revenue, profits and dividends.
– EasyJet chief executive Carolyn McCall
In short
EasyJet remains on route to a strong year of growth thanks to its resilience amid difficult conditions – yet that could be put to the test if cabin crew vote to strike later this year.