Rising fuel costs force easyJet to cut full-year forecast
20 Mar 2008
easyJet, the UK's largest airline, said rising fuel costs have forced it to reduce its full-fiscal-year forecast of a 20 per cent year-over-year increase in pre-tax earnings. According to the low-cost carrier, if current prices were to be maintained there would be an additional second half fuel cost of around £45m, despite the carrier having 40 per cent of its fuel requirements hedged at $750 per tonne.
The carrier said pre-tax profits for the full year would remain below previous guidance as it was unlikely that such a large and immediate fuel increase could be mitigated in the short term by revenue improvements and cost actions, though it is hedged for 40 per cent of its requirements at $750 per tonne.
It did not say to what extent it would lower its full-year guidance.
Results for the fiscal quarter ending 31 March should be "in line with expectations," it said, with February load factor rising1.8 per cent to 84.8 per cent.
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