EasyJet predicts tougher trading as loss widens

EasyJet said it expected tougher trading conditions after the airline's first-half loss more than tripled.

The FTSE 100 carrier's pre-tax loss for the six months to the end of March widened to £272m from £68m a year earlier. Revenue increased 7.3% to £2.34bn.

Revenue per seat fell 6.3%, or 7.4% excluding currency changes, to £50.71. The fall was caused by an accounting change, cancelled flights from the drone incident at Gatwick airport, Ryanair's cancellation of flights a year earlier and other matters.

EasyJet said revenue per seat in the second half would fall slightly and that forward bookings for the third quarter were three percentage points lower than a year ago at 72%. The company said Brexit uncertainty and a wider economic slowdown in Europe were adding to pressure on revenue per seat.

Headline costs per seat are also expected to fall, including a benefit from measures to protect the company from disruption, allowing the company to stick to its guidance for the year. The shares rose 4.9% in early trading to 1,021p.

The company said: "EasyJet's headline profit before tax expectations for financial year 2019 remain unchanged and in line with market expectations.

"Revenue per seat at constant currency in the second half is now expected to be slightly down. This is not helped by the ongoing negative impact of Brexit-related market uncertainty as well as a wider macroeconomic slowdown in Europe. However full year headline cost per seat … is now also expected to be down."

EasyJet said its capacity growth in the current financial year would be at the low end of historic rates.