easyJet benefits from Air France strikes
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easyJet is expected to see a GBP5 million boost in revenue from the strikes that impacted 60% of Air France’s flights over more than a week.
The Luton-based carrier has been expected to post healthy pre-tax profits for its full-year results but will have the additional revenue as more turned to its flights as Air France suffered.
Its September traffic results showed a 7.5% increase in passenger numbers from 5.7 million to 6.1m for the month, which pushed its load factor up from 89.7% to 92.2%.
In its latest results easyJet announced it now expects its full year pre-tax profit to come in between GBP575 million and GBP580m, up from the GBP545m-GBP570m outlook announced in July.
The first six months of the year saw the airline grow capacity by 6.4% and revenue per seat by 1% on a constant currency basis.
Bookings for summer next year are also ahead of next year with a quarter sold.
Carolyn McCall, easyJet’s chief executive said: “easyJet has continued to execute its strategy, delivering another strong performance in the second half of the year. This has enabled easyJet to deliver record profits for the fourth year in a row. This will also lead to our largest ever ordinary dividend payment as we are also proposing to increase the proportion of our profits after tax paid in dividends from 33% to 40%.”
“We finished the year strongly. Our performance demonstrates our continued focus on cost and progress against all our strategic revenue priorities and further emphasises easyJet’s structural advantage against both legacy and low-cost competition,” she added.
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