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| Easyjet revenues boosted by Air France strike | Easyjet revenues boosted by Air France strike |
| (35 minutes later) | |
| Shares in Easyjet have risen after the airline said it had benefited from a strike at Air France, as passengers switched to the no-frills carrier. | |
| Easyjet says the strike has boosted its revenue by about £5m. | Easyjet says the strike has boosted its revenue by about £5m. |
| Combined with a strong end to the financial year, the airline has also lifted its profit forecast. | Combined with a strong end to the financial year, the airline has also lifted its profit forecast. |
| It now expects pre-tax profit for the year to 30 September to be between £575m and £580m, up from previous guidance of £545m to £570m. | It now expects pre-tax profit for the year to 30 September to be between £575m and £580m, up from previous guidance of £545m to £570m. |
| "Easyjet has continued to execute its strategy," said chief executive Carolyn McCall. "This has enabled Easyjet to deliver record profits for the fourth year in a row. | "Easyjet has continued to execute its strategy," said chief executive Carolyn McCall. "This has enabled Easyjet to deliver record profits for the fourth year in a row. |
| "This will also lead to our largest every ordinary dividend payment as we are also proposing to increase the proportion of our profits after tax paid in dividends from 33% to 40%," she said. | "This will also lead to our largest every ordinary dividend payment as we are also proposing to increase the proportion of our profits after tax paid in dividends from 33% to 40%," she said. |
| Shares rose nearly 4% in early trading to 1425p | |
| Last month, Air France pilots went on strike for two weeks in a dispute over employment contracts. It cost the airline hundreds of millions of euros and led to about half of the airline's flights being cancelled. | Last month, Air France pilots went on strike for two weeks in a dispute over employment contracts. It cost the airline hundreds of millions of euros and led to about half of the airline's flights being cancelled. |
| The strike was called off on 28 September in order to start more talks, but an agreement to resolve the dispute has yet to be reached. | The strike was called off on 28 September in order to start more talks, but an agreement to resolve the dispute has yet to be reached. |
| Cheaper fuel | Cheaper fuel |
| The company said increased efficiency had offset increases in regulated airport charges and other costs associated with carrying more passengers. An average Easyjet plane is now 90% full. | The company said increased efficiency had offset increases in regulated airport charges and other costs associated with carrying more passengers. An average Easyjet plane is now 90% full. |
| More than a quarter of seats for October to March have now been sold, slightly more than in the same period last year, it added. | More than a quarter of seats for October to March have now been sold, slightly more than in the same period last year, it added. |
| Easyjet said it expected its fuel bill for the next financial year would be about £50m lower than this year, but currency moves over the period could have a £20m adverse impact. | Easyjet said it expected its fuel bill for the next financial year would be about £50m lower than this year, but currency moves over the period could have a £20m adverse impact. |
| Revenue per seat for the three months to September is expected to grow by around 1.5%, driven by a strong finish to the summer season. | Revenue per seat for the three months to September is expected to grow by around 1.5%, driven by a strong finish to the summer season. |
| Richard Hunter from Hargreaves Lansdown said an increase in both passenger numbers and fewer empty seats on flights were encouraging. | |
| "A continued focus on costs has been helped by a lower fuel bill, whilst the additional proposed increase to the dividend is a reflection of the company's optimism on prospects," he said. | |
| "There are, inevitably, downsides to the investment case, although not necessarily of the company's making - geopolitical concerns, the cyclicality of the industry, increased airport charges and some caution towards the sector given the recent Ebola scare in the US." |