EasyJet lowered forecast for the annual profit in fiscal 2017

EasyJet aircraftEasyJet lowered forecast for the annual profit due to record number of passengers in the summer and failure of main competitors on European market. The airline noted that currency fluctuations had a negative effect on the size of the revenues, while the decrease in tariffs may affect revenue.

EasyJet estimates pre-tax profit for the 12 months to September 30 of 405 million GBP (535 million USD), decreasing from 410 million GBP of the previous forecast. However, the analysts expect an average profit of 402.5 million GBP. At the same time in 2016 fiscal year the figure was at the level of 495 million GBP.

EasyJet has benefited from a 230-235 million GBP fall in fuel expenditure. Headline cost-per-seat, at constant currency, will fall by 4.4% as a result, although – with fuel excluded – the figure will rise by 1%. EasyJet says this is “in line” with earlier guidance.

EasyJet has been battling for market share after low oil prices encouraged European carriers to splurge on seating, spurring price drops that contributed to the demise of its rivals. The British company, which has been targeting bigger airports rather than the secondary ones usually favored by discounters, plans to further step up the challenge in 2018.