UK low-cost airline EasyJet said today that its expectations for full-year earnings were unchanged but forecast a loss in the first half of the year due to higher fuel costs.
EasyJet said a 50% rise in fuel costs and the timing of Easter would hurt first-half pre-tax profits, although this would be partly offset by lower costs and extra income from non-ticket revenues.
'As a result we anticipate a pre-tax loss of approximately £45m sterling for the first half of the year,' Chairman Colin Chandler said in a statement released ahead of the company's annual shareholder meeting.
The airline said it was maintaining forecasts given in November last year for capacity - measured by available seats - to grow 15% this year and profits to rise by a mid to high single-digit percentage. It said cost controls should result in a 3-5% fall in cost per seat for the year and forecast a slight reduction in total revenue per seat.
EasyJet said higher fuel costs would result in an additional £55m charge in the first half. EasyJet's current financial year ends in September 2006.
The airline hired investment bank Goldman Sachs as an adviser in January amid speculation it was defending itself against a possible takeover.
EasyJet founder Stelios Haji-Ioannou has said his and his family's 41% stake in the carrier was not for sale at current share prices.
