Europe's second-largest airline said FY17 PBT is expected at the "upper end of guidance range", despite Brexit woes.
Companies: easyJet plc
Easyjet (LON: EZJ) has released a trading update today updating investors on its performance over the peak summer months this year.
Passenger numbers were a record 24m in the three months to September 30 as capacity grew 8% in the final quarter of FY17 as other European airlines continue to flop.
It was announced last week that Monarch airlines has ceased operating, the third to do so in three months after Air Berlin and Alitalia also caved.
Like Monarch, Easyjet has been adversely impacted by exchange rate movements fueled by Brexit uncertainties, but it seems Easyjet has been able to navigate the storm better than some.
Regarding Forex challenges, the update said:
"Exchange rate movements are now expected to have around a £100m adverse impact on headline profit before tax compared to the financial year to 30 September 2016."
Despite this, Group is still expected to report strong profits:
"Full-year headline PBT is expected to be between £405m and £410m for the year to 30 September 2017, at the upper end of the previously guided range."
These figures have been bolstered by a £230m - £235m reduction in the Group's fuel bill for the year compared to FY16.
Easyjet is obviously looking to capitalise on the downfall of the likes of Monarch, with plans to grow capacity "by 6%" in FY18. It also expects to benefit from its hedging of fuel prices "by between £125m and £145m" in FY18.
Commenting on the outlook for the UK's largest airline, Chief Executive Carolyn McCall commented:
"The market continues to be challenging and easyJet has had to absorb a significant currency impact of £100m in the year. However, easyJet continues to operate Europe's strongest network and the current turmoil in the sector provides easyJet with opportunities to capitalise on its strong customer proposition and grow and strengthen our positions in Europe's leading airports still further."
Shares in the Group were actually trading down 3% at the time of writing, maybe as investors look to profit take after the stocks relatively good run in 2017. Currently, EZJ has a market cap of £5.1bn and a PE ratio of 13x versus the industry median of 10x.
