EasyJet on course to beat City forecasts

Full-year profits at budget airline EasyJet are set to beat City forecasts following a strong third-quarter performance.

The Luton-based carrier, which last month pledged to maintain flights between Inverness and Gatwick following a £20 million deal to buy landing slots from rival Flybe, expects to post a pre-tax profit of between £450m and £480m for the year to 30 September.

That compares with last year’s haul of £317m, and is well ahead of analysts’ forecasts of about £430m.

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EasyJet delivered the upbeat forecast as it announced a 10.5 per cent jump in third-quarter revenues to £1.1 billion, as passenger numbers rose 2.6 per cent to 16.4 million.

Chief executive Carolyn McCall said: “The strong performance demonstrates further progress against the EasyJet strategy and the commitment to deliver returns and profitable growth for shareholders.

“With 73 per cent of second-half seats now booked, EasyJet expects profit before tax for the year to 30 September to be between £450m and £480m, compared to the £317m in the prior financial year assuming no further significant disruption.”

Cantor analyst Robin Byde said concerns over summer bookings now appear “unfounded” and the airline was set to deliver an “impressive” rise in profits.

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