Easyjet swings to first-half profit, but full-year outlook tough

The company reported a £7m profit for the six months ended 31 March, compared with a £53m loss last year.

After upwardly revising earlier guidance in March, the company had forecast making between a £5m loss and a £10m profit in the first half.

Total revenues came in at £1.77bn, up 3.8% year-on-year, as revenue per seat (RPS) increase 2.6% on a constant-currency basis to £54.91.

Easyjet said the performance was driven by an increase in capacity, improvement in load factor, strong October trading, timing of Easter and the positive performance of allocated seating.

Chief executive Carolyn McCall said the company delivered a "record performance". "The profit in the half reflects the delivery of our customer focused revenue initiatives and a strong finish to the ski season as well as the benefit we received from the lower fuel price and favourable foreign exchange movements," she said.

Looking ahead, forward bookings for the summer are said to be in line with the previous year, though the French air traffic control strikes in April resulted in over 600 cancellations and had a £25m adverse impact on profit.

This, along with competitor capacity growing more than Easyjet's, is expected to see RPS at constant currency in the second half fall by low single-digit percentage points.

Meanwhile, exchange rate movements are expected to have a £40m adverse impact in the second half compared with last year.