LONDON (AFX) - easyJet PLC saw its seasonal losses widen following its
takeover of rival Go Fly, though the low-cost carrier also revealed an 11 pct
fall in air fares in the first six months of its financial year.
Reporting April yields down 3 pct year-on-year, the company said the outlook
for the remainder of the year remained uncertain.
While May revenue per flight was "tracking" last year"s levels, June is
currently weak.
There was however good news on the cost of integrating of the Go fleet,
which at 5.6 mln stg in the first half cost less than projected. But that was
offset by a 9.2 mln stg termination charge covering the break-up of its takeover
of Deutsche BA.
easyJet"s loss before goodwill amortisation and exceptional items was 24 mln
stg, which compared with an 8.3 mln deficit a year earlier, but much lower than
market estimates which ranged 35-49 mln.
"At this point in time it is too early to have visibility regarding the
financial outcome for the full year, as the strength of fares over our crucial
summer period is not likely to be clear for a couple of months," said chief
executive Ray Webster.
"However, we expect to maintain high load factors, albeit with yields
continuing to be under some pressure compared to last year, offset to an extent
by the reduction in the rate of growth of capacity which occurs in the second
half of the year."