EasyJet halves its losses as Britons flee the big freeze
Britons escaping our cold weather to seek last-minute sunshine abroad helped easyJet almost halve its first-half losses in its first update as a FTSE 100 company today.
The UK and Europe’s particularly cold winter and sub-zero temperatures at the start of spring wasn’t all good news for the budget carrier: snow meant it cancelled more flights than usual, holding capacity growth to3.3% rather than the expected 3.5% for the six months to April.
But easyJet also cashed in on the big freeze, as a rash of late bookings for Easter to winter sunspots including Egypt’s Sharm el Sheikh and Madeira in Portugal raised sales. The airline’s prices are also higher when passengers book closer to take-off time. “Poor weather across the UK and northern Europe stimulated strong bookings in the last few weeks of the first half of the financial year,” chief executive Carolyn McCall said.
EasyJet’s pre-tax loss for the six months to April will be between £60 million and £65 million, sharply down from its £112 million dive into the red this time last year.
The early Easter also boosted the carrier’s results, and it said that good snow across Europe’s ski resorts for the last two months had also meant stronger than usual sales on its Geneva route, a gateway to the French Alps.
The current cold snap has even seen more passengers than usual booking flights for sunny destinations for October and November this year, an airline spokesman said, plus “very healthy bookings” for the February school half-term in 2014.
But easyJet shares faced a descent from their recent record highs — they were hovering at just under £4 when McCall took over in July 2010 before exceeding £11 this year — falling 3.9% or 42p to 1055p today.
“Technical signals are beginning to suggest traders losing interest, questioning whether this flight has gone too far and the shares are running out of fuel,” Mike van Dulken at Accendo said. But McCall focused on the airline’s performance and “our disciplined approach to capacity deployment and a focus on cost management.”
The chief executive also today exercised existing options to place an order for three new Airbus A320 jets, whilst the airline is still mulling a another large plane order which easyJet founder Sir Stelios Haji-Ioannou has vehemently opposed.
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
First full-length look is finally here
World cities ranked in terms of safety, food security and 'liveability'
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Sex abuse inquiry: 'Victims receive death threats' after MPs release names online
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Teenager brandishing fake gun taken down by police after demanding airtime on Netherlands' NOS TV station
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...