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
Voices
There will be a chance to bid for a rare example of the SAS Diary, collated by a former member of the regiment in the aftermath of World War II but only published – in a limited run of just 5,000 – in 2011
charity appealTime is running out to secure your favourite lot as our auction closes at 2pm today
News
File: James Woods attends the 52nd New York Film Festival at Walter Reade Theater on September 27, 2014
peopleActor was tweeting in wake of NYPD police shooting
Sport
Martin Skrtel heads in the dramatic equaliser
SPORTLiverpool vs Arsenal match report: Bandaged Martin Skrtel heads home in the 97th-minute
News
Billie Whitelaw was best known for her close collaboration with playwright Samuel Beckett, here performing in a Beckett Trilogy at The Riverside Studios, Hammersmith
people'Omen' star was best known for stage work with Samuel Beckett
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
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

Carlton Senior Appointments: Private Banking Manager - Intl Bank - Los Angeles

$200 - $350 per annum: Carlton Senior Appointments: Managing Producer – Office...

Carlton Senior Appointments: San Fran - Investment Advisor – Ind Advisory Firm

$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Day In a Page

Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all
The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there
The 12 ways of Christmas: Spare a thought for those who will be working to keep others safe during the festive season

The 12 ways of Christmas

We speak to a dozen people who will be working to keep others safe, happy and healthy over the holidays
Birdwatching men have a lot in common with their feathered friends, new study shows

The male exhibits strange behaviour

A new study shows that birdwatching men have a lot in common with their feathered friends...
Diaries of Evelyn Waugh, Virginia Woolf and Noël Coward reveal how they coped with the December blues

Famous diaries: Christmas week in history

Noël Coward parties into the night, Alan Clark bemoans the cost of servants, Evelyn Waugh ponders his drinking…
From noble to narky, the fall of the open letter

From noble to narky, the fall of the open letter

The great tradition of St Paul and Zola reached its nadir with a hungry worker's rant to Russell Brand, says DJ Taylor
A Christmas ghost story by Alison Moore: A prodigal daughter has a breakthrough

A Christmas ghost story by Alison Moore

The story was published earlier this month in 'Poor Souls' Light: Seven Curious Tales'