Flashpoints across globe cause easyJet to scale back forecasts

easyJet's latest trading update prompted the City to scale back forecasts for annual profits.
easyJet's latest trading update prompted the City to scale back forecasts for annual profits.
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Budget airline easyJet was counting the cost of unrest and political tensions affecting Israel, Egypt and Russia after its latest trading update prompted the City to scale back forecasts for annual profits.

Shares fell by 4 per cent as chief executive Carolyn McCall said the airline expected pre-tax profits for the year to the end of September to be in the range of £545m to £570m.

This represents an increase of at least 14 per cent on the year before but City experts had pencilled in a figure of £572m.

Ms McCall said the expected range assumes “no further significant disruption” and “includes the impact from the situations in Israel, Egypt and Moscow”. She said the quarterly performance was “solid” and that the airline was “well positioned to continue to deliver sustainable growth and returns”.

Easyjet also said revenue per seat growth at Gatwick had been hit by its increased capacity at the airport after it picked up flying slots from rival Flybe.