EasyJet Set to Report Strong Profit Growth Despite Challenges
EasyJet is expected to announce significantly higher annual profits this week as robust summer travel demand helped the airline overcome economic concerns and operational disruptions.
Key Financial Performance
Analysts project easyJet will report profits rising to £650 million for the year ending September, up from £610 million in the previous period, according to broker AJ Bell. The budget carrier’s strong performance comes despite facing substantial challenges from French air traffic control strikes.
Operational Challenges and Costs
The airline warned that French air traffic control strikes in July created ‘unexpected and significant costs,’ forcing cancellation of 660 flights and resulting in a £15 million financial hit. However, further threatened industrial action last month was ultimately called off.
Package Holidays and Market Position
In its July quarterly update, the group highlighted that its package holiday business ‘continues to perform strongly,’ providing additional revenue streams beyond core flight operations.
Investor Concerns and Share Performance
Richard Hunter, head of markets at Interactive Investor, cautioned that easyJet could face ‘the firing line for demotion from the FTSE 100 in the upcoming December reshuffle.’ Reflecting these concerns, shares in easyJet have declined 17 percent this year.
