EasyJet, Europe's second-biggest budget airline, reported a reduced first-half loss today thanks to some recovery in markets since the end of the Iraq war last year, but issued a more cautious outlook due to competition.
EasyJet, which also unveiled a financing agreement for 82 of the 120 Airbus jets it had ordered in October 2002, had told shareholders at the annual general meeting three months ago it was "cautiously optimistic" about the full year.
"However, given the increasingly competitive marketplace it is appropriate now to be cautious about the performance for the full financial year," chief executive Mr Ray Webster said.
The airline's underlying pre-tax loss of £18.5 million for the six months to the end of March, compared with a loss of £24.4 million in the same period last year, was worse than the average of analysts' forecasts for a loss of £16.36 million.
The carrier, whose average fare rose 1.6 per cent, usually has a weak first half because of less demand in autumn and winter ahead of the summer holiday season and it also absorbs major maintenance and staff training costs in the half.