easyJet warns of bigger loss
Source: Agencies |
January 21, 2011, Friday
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Print Edition
Print Edition
SHARES in budget airline easyJet fell 10 percent yesterday after the carrier warned that its loss in the first half of its financial year may be twice as large as a year earlier.
It may post a loss from 140 million pounds (US$223 million) to 160 million pounds for the six months ending March 31, versus 78.7 million pounds last year.
Its shares fell 10.5 percent at 408 pence in early trading in London.
"In the current uncertain economic environment in Europe, it seems unlikely that the fuel cost increases can be fully recovered through higher yields," said Gert Zonneveld, analyst at Panmure Gordon & Co. "Nevertheless, we are encouraged the indications for second half unit revenues remain robust and we continue to rate the share a buy."
The carrier did not report first quarter earnings in the trading update
The airline said the biggest factor is fuel costs which have risen from US$681 a metric ton a year ago to US$897 this year. It said winter storms cost 18 million pounds and a strike by Spanish air controllers cost 6 million pounds in its first quarter.
It may post a loss from 140 million pounds (US$223 million) to 160 million pounds for the six months ending March 31, versus 78.7 million pounds last year.
Its shares fell 10.5 percent at 408 pence in early trading in London.
"In the current uncertain economic environment in Europe, it seems unlikely that the fuel cost increases can be fully recovered through higher yields," said Gert Zonneveld, analyst at Panmure Gordon & Co. "Nevertheless, we are encouraged the indications for second half unit revenues remain robust and we continue to rate the share a buy."
The carrier did not report first quarter earnings in the trading update
The airline said the biggest factor is fuel costs which have risen from US$681 a metric ton a year ago to US$897 this year. It said winter storms cost 18 million pounds and a strike by Spanish air controllers cost 6 million pounds in its first quarter.
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