British low-cost airline EasyJet has raised its full-year profit guidance to match last year's earnings, after cost cuts and improved revenues helped offset higher fuel costs, and its shares jumped in early trade.
"Due to the improved revenue position and our continued focus on cost, we now expect that reported pretax profit for the current financial year will be broadly in line with last year," Chief Executive Ray Webster said in a statement on Friday which accompanied third-quarter passenger figures.
EasyJet had previously said annual pretax profit would be below last year's 62.2 million pounds.
Shares in the airline had risen 4.3 percent to 261-3/4 pence by 0807 BST.
Europe's second-biggest low-cost carrier said although the cost of fuel had risen and the dollar had strengthened against sterling, these negatives had been more than offset by improved revenue mix, more routes and the absence of a fuel surcharge.
Total revenues per passenger for the year were expected to be slightly ahead of last year's 44.82 pounds.
"They are very positive results and it shows demand is strong. It looks like the fourth quarter will be even better than Q3," BHP Paribas analyst Geoff Van Klaveren said.
EasyJet's brighter outlook was reflected by British Airways, which today reported a 36 percent surge in first-quarter profit, and Ryanair, which earlier this week unveiled record first-quarter profit.
Passenger numbers in the three months to end-June were up 20.6 percent to 7.6 million with a load factor - an indication of how many seats it has filled on flights - at 84.9 percent.
For July, passenger numbers rose 18 percent and easyJet said that although the London bombings hit demand for flights into London, they would not have a big effect on annual results.
"The London terrorist bombings affected demand for inbound travel to London but, barring further incidents, are not expected to have a material impact on the result for the year," Webster said.
The airline said its July load factor was 88.4 percent, 0.3 percentage points higher than a year earlier.