British budget airline easyJet raised its 2004 earnings guidance today after a busy summer but said capacity growth would slow to 16 per cent next year.
EasyJet said it expected pre-tax profits for the year to end-September to be more than £60 million sterling, more optimistic than earlier guidance for earnings to "at least" exceed last year's £52 million.
"EasyJet has enjoyed improved trading during the final quarter of 2004," chief executive Mr Ray Webster said in a statement.
However, the airline said it expected yields to remain under pressure next year and planned to increase the number of aircraft in its fleet by 16 per cent , less than 24 per cent previously planned.
The airline has been reviewing operations at its airports as stiff competition in the European short-haul market drives down ticket prices and high fuel prices bite.
EasyJet, which competes with low-cost rival Ryanair and full-service carrier British Airways, said last week it expected a tough 6 to 18 months. The carrier's shares dived in June when it said annual earnings would be below market forecasts.
Mr Webster said on Thursday the airline now expected revenue growth of 16 per cent this year and 2004 passenger numbers to exceed 24.2 million after load factors remained in the high 80s during the summer.
The company also announced five new routes from London Gatwick, including three new destinations in Ireland and additional services to Spain. EasyJet shares, which have lost more than half their value so far this year, closed today 139 pence.