The Week Ahead: EasyJet set to remain in the red as fuel bill bites

Airlines may have enjoyed a rally last week as the price of oil slipped, but that is unlikely to prevent the issue of fuel costs being a major focus of easyJet's half-year results tomorrow.

Noting that the budget carrier's "sensitivity is roughly such that a $10 move in fuel equates roughly £3m of cost", Wyn Ellis, of Numis Securities, believes the airline will report a pre-tax loss towards the higher end of the guidance of between £140m and £160m it gave at its update in January, despite the recent weakness of the dollar providing some relief.

Last week, eayJet trumpeted an impressive 35.1 per cent growth in passenger numbers in April. Nomura's Andrew Evans forecasts a fall in total revenue per seat of 2.3 per cent, "a result of weaker second-quarter pricing (a function of higher capacity growth in the second quarter and a drop-off in bookings during the poor weather) and lower ancillary revenues from bag charges".

Meanwhile, Mr Ellis says that in terms of easyJet's comments about the future, the market will "be especially sensitive ... with regard to bookings for the key summer months". EasyJet's rival FlyBe issued a profits warning last week, citing a slowdown in leisure passengers. Mr Ellis remains cautious, noting that "the consumer remains under pressure, particularly in the UK, and we believe that easyJet will be finding it difficult to recoup rising fuel costs via higher yields".



Today

Outsourcing will be in focus this morning, with Serco posting an update in the wake of recent reports of growing government caution over using the private sector to provide public services. The group announces its interim management statement today, and Espirito Santo believes its contract wins should be similar to the £1bn it saw in the same period a year before.

Thomas Cook is also reporting today, and JPMorgan Cazenove says the tour operator's operating loss for the first six months will accelerate by £40m to £170m, with a hit of roughly £20m from the recent unrest in Tunisia and Egypt and the same amount from Easter coming late in the year.

Results/Updates: Centrica, Hiscox, HSBC, Inmarsat, Lonmin, Serco, Telecity, Thomas Cook and Travis Perkins.



Tomorrow

Following on from Serco, fellow outsourcer Capita will update the market tomorrow, with Espirito Santo expecting it to match last year's performance. Analyst David Brockton notes that "greater acquisition spend has already been a notable feature of the period, with six businesses acquired to date through 2011 collectively worth at least £83m", but adds that "organic growth will be the key determinant for any sustainable re-rating".

In a similar vein, TUI Travel will follow in the footsteps of Thomas Cook with an update tomorrow, and despite facing the same issues, JPMorgan Cazenove believes losses over the first half will have improved by £2m to £312m, helped by "good trading (excluding UK and France) and positive foreign exchange movements".

Results/Updates: Balfour Beatty, BG Group, Capita, CSR, easyJet, G4S, Imperial Tobacco, InterContinental Hotels, Morgan Crucible, N Brown, National Express and Tui Travel.



Wednesday

Restaurant Group is expected to strike an upbeat tone when it posts an update alongside its annual meeting. Citigroup predicts that the company will end up seeing like-for-like sales growth of 2.5 per cent over the full year, which should cancel out cost inflation to keep its margins steady.

A year-end trading update from the Comet owner Kesa Electricals is also due out on Wednesday. Although Britain's economic outlook may be gloomy, Royal Bank of Scotland points out that about 70 per cent of the group's sales are overseas. The broker says data from France, Kesa's core market where it owns the Darty chain, shows an average rise of 5.2 per cent each month in consumer electrical sales over the first quarter Like-for-like sales in France are likely to have grown by 1 per cent over the year.

However, its analysts believe Kesa's UK losses will have grown to €10.7m, noting that "the market's focus has been on Comet's poor performance and whether the brand has a future in the UK market".

Results/Updates: Bovis Homes, Barratt Developments, Drax, FirstGroup, Greggs, International Personal Finance, J Sainsbury, Kesa Electricals, Prudential, Rathbones, Restaurant Group and Wood Group.



Thursday

Results/Updates: 3i, Aegis, Amlin, BT, Cookson, ENRC, Informa, Old Mutual, Pace, RSA, Supergroup, Tullett Prebon, Tullow Oil and Yule Catto.



Friday

Results/Updates: Catlin, Dignity, LSE, Petrofac and Spectris.

Economics Diary

Today

EU Sentix investor confidence index.



Tomorrow

BRC retail sales monitor; RICS house price balance; US import price index.



Wednesday

Bank of England inflation report; Trade balance; US budget statement; US oil inventories; US trade balance.

Thursday

EU industrial production; European Central Bank monthly bulletin; Industrial production; Manufacturing output; NEISR GDP estimate; US business inventories; US PPI; US retail sales; US unemployment data.



Friday

US CPI; US University of Michigan consumer sentiment.

Start your day with The Independent, sign up for daily news emails
News
Nick Clegg on the campaign trail in Glasgow on Wednesday; he says education is his top priority
peopleNick Clegg remains optimistic despite dismal Lib Dem poll ratings
Arts and Entertainment
Déjà vu: David Tennant returns to familiar territory with Anna Gunn (‘Breaking Bad’)
tvReview: Something is missing in Gracepoint, and it's not just the familiar names
Arts and Entertainment
Buttoned up: Ryan Reynolds with Helen Mirren in ‘Woman in Gold’
filmFor every box-office smash in his Hollywood career, there's always been a misconceived let-down. Now he says it's time for a reboot
News
people
News
Actress Julianne Moore wins the Best Actress in a Leading Role Award for 'Still Alice' during the 87th Annual Academy Awards in Hollywood, California
people
Sport
Ross Barkley
footballPaul Scholes says it's time for the Everton playmaker to step up and seize the England No 10 shirt
News
'We will fix it': mice in the 1970s children’s programme Bagpuss
science
Life and Style
2 Karl Lagerfeld and Choupette
fashion
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Graduate Recruitment Resourcer

£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...

Recruitment Genius: Telesales Executive - OTE £32,000+

£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...

Ashdown Group: Marketing Manager - B2B, Corporate - City, London

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...

Neil Pavier: Commercial Analyst

£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...

Day In a Page

War with Isis: Iraq declares victory in the battle for Tikrit - but militants make make ominous advances in neighbouring Syria's capital

War with Isis

Iraq declares victory in the battle for Tikrit - but militants make make ominous advances in neighbouring Syria
Scientists develop mechanical spring-loaded leg brace to improve walking

A spring in your step?

Scientists develop mechanical leg brace to help take a load off
Peter Ackroyd on Alfred Hitchcock: How London shaped the director's art and obsessions

Peter Ackroyd on Alfred Hitchcock

Ackroyd has devoted his literary career to chronicling the capital and its characters. He tells John Walsh why he chose the master of suspense as his latest subject
Ryan Reynolds interview: The actor is branching out with Nazi art-theft drama Woman in Gold

Ryan Reynolds branches out in Woman in Gold

For every box-office smash in Ryan Reynolds' Hollywood career, there's always been a misconceived let-down. It's time for a rethink and a reboot, the actor tells James Mottram
Why Robin Williams safeguarded himself against a morbid trend in advertising

Stars safeguard against morbid advertising

As film-makers and advertisers make increasing posthumous use of celebrities' images, some stars are finding new ways of ensuring that they rest in peace
The UK horticulture industry is facing a skills crisis - but Great Dixter aims to change all that

UK horticulture industry facing skills crisis

Great Dixter manor house in East Sussex is encouraging people to work in the industry by offering three scholarships a year to students, as well as generous placements
Hack Circus aims to turn the rule-abiding approach of TED talks on its head

Hack Circus: Technology, art and learning

Hack Circus aims to turn the rule-abiding approach of TED talks on its head. Rhodri Marsden meets mistress of ceremonies Leila Johnston
Sevenoaks is split over much-delayed decision on controversial grammar school annexe

Sevenoaks split over grammar school annexe

If Weald of Kent Grammar School is given the go-ahead for an annexe in leafy Sevenoaks, it will be the first selective state school to open in 50 years
10 best compact cameras

A look through the lens: 10 best compact cameras

If your smartphone won’t quite cut it, it’s time to invest in a new portable gadget
Paul Scholes column: Ross Barkley played well against Italy but he must build on that. His time to step up and seize that England No 10 shirt is now

Paul Scholes column

Ross Barkley played well against Italy but he must build on that. His time to step up and seize that England No 10 shirt is now
Why Michael Carrick is still proving an enigma for England

Why Carrick is still proving an enigma for England

Manchester United's talented midfielder has played international football for almost 14 years yet, frustratingly, has won only 32 caps, says Sam Wallace
Tracey Neville: The netball coach who is just as busy as her brothers, Gary and Phil

Tracey Neville is just as busy as her brothers, Gary and Phil

The former player on how she is finding time to coach both Manchester Thunder in the Superleague and England in this year's World Cup
General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?