EasyJet forecasts narrower loss

EASYJET, Europe’s second-biggest discount carrier, has forecast a narrower six-month loss after business bookings helped offset rising fuel costs.

The pre-tax loss in the six months through March 31st will be £100 million to £120 million compared with a loss of £153 million in the same period last year, the carrier said in a statement. The previous forecast was for a loss of £140-£160 million. Earnings were helped by a rise in revenue per seat of more than 10 per cent and £18 million less in costs for winter disruptions and de-icing.

Chief executive Carolyn McCall has added flights on key routes while introducing allocated seating, flexible tickets and sales via corporate agents to grab a bigger slice of a business market in which later bookings offer fares typically 20 per cent higher than for leisure trips.

EasyJet’s sales gain would allow it to absorb most of a £100 jump in jet-fuel costs for the fiscal first half, Ms McCall said.

EasyJet said its financial expectations for the second half were unchanged. The collapse of Spanair and Malev, along with capacity discipline, had helped lift yields in the region, Ms McCall said in an interview. – (Bloomberg)