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Beach holidays help lift easyJet clouds

Wednesday, July 22, 2015 - 01:12

Britain's easyJet has guided to annual profit growth of up to 14 percent. As Hayley Platt report the low-cost carrier also says some of the headwinds it had flagged two months ago had been offset by higher demand on beach holiday routes.

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Demand for beach holidays helped headoff headwinds at easyJet and boost profits. Britain's budget airline's guidance for the year could increase by up to 14 percent. The news pushed shares up 5 percent. It comes just two months after the airline voiced concerns over competitive price pressures, warning that revenue's per seat would be lower in the period and air traffic control strikes in France would hit profits. In fact easyJet sold more seats than forecast, as holidaymakers headed off to the sun spots across Europe. The outlook compared unfavourably with larger competitor Ryanair, which said in May that average fares would remain broadly flat in the key summer months. easyJet's better-than-expected annual profit growth puts it on track to meet analysts forecasts for a 10 percent rise. Europe's second-biggest low-cost carrier expects full-year pretax profits to be in the range of 620 and 660 million pounds. Still the airline warned of possible troubles ahead as the Greek crisis rumbles on. Also adding to the uncertainty - the militant attack in Tunisia, a recent fire at Rome's airport and various threats of industrial action.

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Beach holidays help lift easyJet clouds

Wednesday, July 22, 2015 - 01:12