 Easyjet profits are set to fall despite higher passenger numbers |
Easyjet shares have fallen 5% after the no-frills airline reported widening half-year losses and said higher fuel costs would hit annual profits. Rising fuel costs contributed to a 14% rise in losses to �31.2m ($57.1m) for the six months to March, historically a quieter trading period for Easyjet.
The budget airline said that fuel costs would also eat into its yearly profits, despite a rise in passenger numbers.
Passenger numbers were 13.5 million for the six months, up 25% on a year ago.
Easyjet's shares closed down 10 pence, or 4.03%, at 238p.
Added costs
The rising cost of fuel added �18m to Easyjet's bottom line over the past six months and now accounts for 18% of the airline's total costs.
Easyjet said it expected �41m in additional fuel costs in the second half of the year and would cut costs across the company to offset the impact.
Unlike many other airlines, Easyjet has not introduced a fuel surcharge on tickets to combat rising fuel costs, preferring to cut costs elsewhere.
"We have made steady progress on costs and, so far, mitigated the impact of a higher fuel price," chief executive Ray Webster said.
"But there is more to do as we seek balanced growth, extending our reach in Europe while protecting our margins.
"At prevailing fuel prices and exchange rates, we continue to expect reported pre-tax profit to be below last year but in line with current expectations."
New routes
The rise in passenger numbers contributed to a 26% rise in total sales to �553m.
Easyjet opened up 40 new routes over the period, boosting its revenues per passenger by 1%.
Mr Webster is stepping down as chief executive later this year while the company's founder, Stelios Haji-Ioannou, recently rejoined the company's board.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 
We have so far mitigated the impact of a higher fuel price
