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EasyJet Sees Strong Performance In Q4 And FY18, Higher Capacity In FY19

Low-cost airline easyJet Plc (ESYJY.PK,EZJ.L) Friday said it expects to deliver a strong performance in the fourth quarter and fiscal 2018 driven by better-than-expected growth in passenger and ancillary revenues, as well as reduced losses at Tegel operation.

In its trading update, the company said in the fourth quarter, it expects robust customer demand driving outperformance in both passenger and ancillary revenue growth, and strong profitability.

Disruption across Europe continues to be an industry wide issue and is having an impact on revenue, cost and operational performance, with the main causes being European industrial action and air traffic restrictions.

Despite the impact of disruption, easyJet expects to deliver full year 2018 headline profit before tax of between 570 million pounds and 580 million pounds. This is in the upper half of previous guidance.

For the full year, total reported revenue including Tegel is expected to be about 5.895 billion pounds.

Total revenue per seat excluding Tegel operations at constant currency for the full year is expected to increase by circa 6.5%.

Total revenue per seat excluding Tegel operations at constant currency for the second half is expected to increase by circa 5.0%, at the high end of previous guidance.

Passenger numbers for the full year excluding Tegel are expected to increase by 5.4% to about 84.6 million, driven by an expected increase in capacity of 4.2% to circa 90.3 million seats which was lower than originally planned due to the level of external disruption. Load factor for the full year is expected to increase by 1.0 percentage points to 93.6%.

Total headline cost excluding fuel and including Tegel is expected to be around 4.135 billion pounds.

Further, easyJet intends to declare a full year dividend consistent with its stated policy of paying a dividend equivalent to 50% of headline earnings per share.

Looking ahead, for the year ending September 30, 2019, easyJet expects capacity to grow by circa 10% to around 105 million seats. H1 revenue per seat at constant currency is expected to decrease by low to mid-single digits.

easyJet targets to break even in Berlin in Financial Year 2019.

easyJet plans to provide further details on its medium term outlook as part of Full Year 2018 results announcement on November 20.

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