Budget airline easyJet has released details of its quarterly revenues, and reports better-than expected results.
The company says that in the three months to June 30th, revenue was lower. However, the performance was not as bad as the guidance that the airline had issued in May and strong demand for beach holidays to destinations such as Malaga, Alicante and Faro had given a boost to the figures.
Revenue per seat, which is a key measure of airline efficiency, fell 5.4 per cent to £59.08 per seat, while the airline also reported 1,364 cancelled flights – many of these due to air traffic control strikes in France and a fire at Rome Fiumicino. The budget airline also warned that other uncertainties, such as the terrorist attack in Tunisia and the Greek financial crisis, would also have play a part in the company's financial results.
Shares in easyJet gained 4.3 per cent to 1,739 pence at 0940 BST – the highest level since mid-May, reports Reuters.
The strength of the pound has also helped, as it has made holidays on the content more appealing for British holiday makers this year. The euro hit a 7.5 year low against the pound on Friday (July 17th) and has dropped around 10 per cent against the pound since the beginning of the year.
Currently, the company is forecasting profit growth of between seven and 14 per cent for the year to the end of September – this puts it back on track to meet forecasts for a ten per cent rise.
According to analysts, investors would be relieved by the news. "With all the concerns that the market has had about excess capacity in the market and the likely impact on yields, we believe that these results will be well received," explained analyst Wynn Ellis.
Commenting on the third quarter results, easyJet's chief executive Carolyn McCall said the numbers indicate that the company continued positive performance.
"Our Q3 performance shows that easyJet's strategy continues to deliver, in particular with good performance in the UK and beach routes across Europe," she said.
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