easyJet lowers profit forecast stronger than expected

July 24, 2008 · Filed Under Airlines, airline industry

easyJET LONDON (AP) - The British-frills airlines easyJet has its earnings forecast for the fiscal year 2007/08 due to high fuel costs more than expected back. At the same time, the company confirmed on Thursday in London considerations to the closure of its second German site in Dortmund. There are already talks with Dortmund’s workforce in progress, said the responsible for Europe easyJet spokesman Oliver Aust Deutsche Presse-Agentur dpa.

The final decision should be after a test phase in September to be taken. Of the 116 easyJet employees in Dortmund should, if possible, but no one dismissed. In the event of the closure of the site would be the “overall still growing” keen, “these well-qualified employees use elsewhere.”

By mid-July, easyJet announced 26 October total of six connections from Dortmund. In future there will likely only one of the company stationed aircraft, it said. In Berlin, Germany’s largest easyJet location, savings are not planned.

According to published on Thursday quarterly profit figures, the airline before taxes and special items of 201.9 million British pounds in the previous year to 110 to 120 million pounds (139 to 152 million euros) to fall. This estimate is based on the assumption of an average fuel price of 1280 dollars per ton in the fiscal second half. Industry experts had on average a profit of around 138 million pounds expected.

In winter 2008/09, the airline because of the fuel issue challenges to the entire airline industry are responsible. Therefore, his easyJet flight capacity in the winter for four to six percent decrease.

In February easyJet had reaffirmed the goal of the pre-tax profit by 20 percent and around 40 million pounds to increase. However, the company had in March announced a lower profit, without this to work. The burden of higher fuel costs expected to continue in the second half of an estimated 45 million British pounds amount, it was then.

The airline now quantified the increase in fuel costs for the entire fiscal year to 185 million pounds. However, 50 percent of these were primarily due to the increase of oil price-related revenue growth and cost reductions have been compensated. In the third quarter, the total revenue by 32 percent to 641 million pounds climbed. The number of passengers was up 16 percent to 11.5 million.