EasyJet reports higher profits
Europe’s second largest low cost air carrier EasyJet has beaten the forecasts from the market analysts to post a 9 percent rise in annual profits on Tuesday. The company benefited from the new routes, raising ticket prices and cutting costs. All these factors helped the company battle the ever-rising fuel costs. The reports also helped the company improve their share prices in the market to touch a 20-month high.
EasyJet also forecasted a similar earnings increase this year by cutting costs further and earning more from non-ticket products. The company is well known in the airline industry for their funky bright orange planes and cheap tickets to short-haul European destinations. They reported that their pretax profit for the year to the end of September 2005 was 68 million pounds, up from 62 million pounds a year earlier.
The market had expected them to post a profit of around 63 million pounds. The figures in fact also managed to beat the company’s own estimates. Chief Executive Ray Webster added that costs per seat were expected to fall by 3 to 5 percent before fuel this year. In addition, ancillary revenues are expected to rise by a double-digit percentage. He was talking to reporters on a conference call: “Overall, we therefore expect to achieve mid-to-high single-digit percentage profit growth.â€