SHARES IN Easyjet soared 15 per cent yesterday after the low-cost carrier said its plan to win more custom from business travellers had pushed revenues up by almost a quarter during the three months to July.
The airline’s strategy of attracting more corporate travellers by launching a flexible fare last November paid dividends during the quarter, with passengers flying through its “business initiative” scheme increasing 20 per cent against the previous three months.
Carolyn McCall, chief executive, said the group’s strong performance was a reflection of the “continued successful implementation of the strategy”.
“We expect at current fuel and exchange rates to deliver a pre-tax profit for the year ended September 30th of between £200 million and £230 million assuming normal conditions and a return on capital employed for the year of between 10 per cent and 12 per cent,” Ms McCall said.
However, she added that the trading backdrop remained challenging, with high fuel prices and economic uncertainty continuing to dog the airline industry.
Revenues for the three months to the end of June rose to £935 million, 23 per cent ahead of the same period a year earlier.
The improved performance came on the back of a 17.3 per cent rise in the number of travellers using the carrier, which stood at 14.4 million for the quarter.
Ancillary revenue, which includes charges for services such as checking in bags, rose 37 per cent against the previous quarter to £194 million. – (Copyright The Financial Times Limited 2011)
