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EasyJet Sees FY Headline Pre-tax Profit To Be At Upper End Of Prior Range

easyJet Plc (ESYJY.PK,EZJ.L) said that it expects headline profit before tax to be between 405 million pounds to 410 million pounds for the year to 30 September 2017, at the upper end of the previously guided range.

Headline cost per seat excluding fuel at constant currency is expected to increase by around 1% for the full year, in line with guidance. Headline cost per seat at constant currency including fuel is expected to decrease by 4.4%. Non-headline costs are expected to be about 23 million pounds.

Exchange rate movements resulted in a net adverse impact on the Group. Foreign exchange rate movements are now expected to have around a 100 million pounds adverse impact on headline profit before tax compared to the financial year to 30 September 2016.

easyJet's unit fuel bill for the financial year to 30 September 2017 is expected to decrease by between 230 million pounds and 235 million pounds compared to the financial year to 30 September 2016.

Net cash on the 30 September 2017 is expected to be 357 million pounds, reflecting a continued strong balance sheet as the business enters a year of significant investment in new aircraft.

easyJet plans to grow capacity by around 6% for the financial year ending 30 September 2018. Whilst revenue momentum continues to improve, the company expects continued pressure on yields reflecting ongoing market capacity growth that is currently forecast to be around 5% in the first quarter.

Based on today's fuel prices unit fuel costs for the year to 30 September 2018 are expected to benefit easyJet by between 125 million pounds and 145 million pounds as a result of easyJet's advantaged hedging position.

The total expected foreign exchange impact for the year to 30 September 2018, is expected to be a headwind of around 20 million pounds.

Passenger numbers for the three months ended 30 September 2017 were 24.1 million driving a record load factor of 95.6%. Passengers have benefitted from low summer fares across the network, particularly on beach markets from the UK. This is reflected in a year-on-year reduction in revenue per seat at constant currency of 3.7% during the fourth quarter and reduction of 1.4% in the second half, which is slightly better than guidance due to high load factors and strong ancillary revenue performance.

easyJet has grown capacity by 8% in the final quarter compared to prior year, continuing to build market share and number one and number two positions at key airports.

easyJet said it will publish its full year results on 21 November 2017 when it will provide further details on its performance in the twelve months to 30 September 2017 and outlook for financial year 2018.

by RTT Staff Writer

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