easyJet, Europe’s second-largest airline has forecast that the low-cost carrier’s earnings for the fiscal year (end of September) could soar by as much as 45 percent. It puts the better-than-expected results mainly down to the demise of Monarch Airlines at the back end of last year, and continued strike action at Air France.
Despite having to cancel 2,606 flights during the third fiscal quarter, a massive rise compared to 314 cancelations for the same period last year, easyJet is predicting a pre-tax profit for the 12-month period up to the end of September in the region of £550-590 million (US$720-770 million), up from May’s forecast of £530-580 million.
Despite the high level of flight cancelations in the third quarter due to air traffic control restrictions and industrial action, as well as severe weather conditions, the overall resultant losses equating to approximately £25 million (US$33 million), the carrier confirmed that this had been partly offset by strong demand for holidays.
easyJet also confirmed at the Farnborough International Airshow that it is due to get a boost from new larger and more cost-effective planes that will allow it to increase passenger numbers to airports where slots are close to full.
EasyJet is due to receive 30 A321neos, which it will operate on popular routes between London Gatwick and tourist destinations in Spain, including Palma and Malaga.