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Strong September lifts EasyJet estimate

EasyJet - Ups earnings forecast
EasyJet - Ups earnings forecast

British low-cost airline EasyJet has said its annual earnings will be slightly better than it had expected. This follows a strong performance in September despite heightened airport security.

EasyJet said it expected pre-tax profit for the year to the end of September to be slightly ahead of earlier guidance for a 40-50%.

Sentiment for airlines has improved in recent weeks following a fall in oil prices and after restrictions on hand-luggage at London airports were eased.

Rival Ryanair upped its profit guidance last week because the cost of hedging its fuel needs was lower than expected following a fall in oil prices.

EasyJet said total revenue for the year to the end of September was up 20.7% to £1.62 billion. The airline said revenue in September was ahead of expectations. The carrier's load factor - a measure of how well it filled planes - was 86.5% in September. The company said passenger numbers rose 9.8% in the month.

EasyJet cancelled 469 flights in August because of the heightened security at London airports, imposed after police said they foiled a plot to bomb airliners.