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EasyJet Soars Despite Strikes: Profits Set to Rise
24 Nov
Summary
- EasyJet anticipates increased annual profits despite summer travel disruptions.
- Analysts project profits to reach £650m, up from £610m the prior year.
- French air traffic control strikes caused significant unexpected costs for the airline.
This week, easyJet is expected to report a significant increase in its annual profits, driven by strong demand during the summer travel season. Analysts forecast profits to reach £650 million for the year ending September, a notable rise from the £610 million reported in the prior year. The company's package holiday division has also demonstrated robust performance.
Despite the positive financial results, easyJet faced considerable challenges, particularly from French air traffic control strikes. These walkouts led to substantial and unexpected costs, forcing the cancellation of 660 flights and impacting finances by £15 million. Further threatened industrial action was averted last month.
While the airline anticipates higher profits, its stock performance has been less encouraging, with shares declining 17 per cent this year. There are also market concerns regarding its potential demotion from the FTSE 100 index in the upcoming December reshuffle, reflecting investor sentiment amidst operational hurdles.
