LONDON (ShareCast) - (Sharecast News) - Shares in easyJet were on the descent on Wednesday after the budget airline narrowly missed consensus forecasts for top-line growth in its first quarter, though losses more than halved year-on-year.
The company reported a headline loss before tax of £61m for the three months to 31 December, compared with a loss of £126m a year earlier, as group revenues rose 13% to £2.04bn.

Headline EBITDA for the quarter, before taking into account financing costs, depreciation and amortisation, doubled to £148m from £74m a year earlier.

Results were driven by a 4% year-on-year increase in the number of flights flown, a 7% rise in the number of passengers and a 1.9-basis point improvement in the load factor to 88.2%. Capacity, as measured by available seat kilometres (ASK), rose 11%, while sector length rose 6%.

However, according to Morgan Stanley, group revenues were around £5m short of forecasts; total revenue per seat rose by 6% to £74.36, missing the £75 estimate.

Fuel costs per ASK fell by 13% to 1.66p due to "favourable fuel prices", and are on track to reduce by 8% over the first half, in line with guidance.

Looking ahead, easyJet said it expects to grow ASK by 8% over the financial year ending 30 September, as reported in its annual results in November, while forward bookings for the second quarter currently stand at 57%, up from 55% at the same date last year.

"Looking to this summer, we have seen continuing demand for easyJet's flights and holidays where we have one million more customers already booked, with firm favourites like Palma, Faro and Alicante as well as new destinations like Tunisia and Cairo proving popular," said chief executive Kenton Jarvis.

"All of this demonstrates positive progress towards our medium term target to deliver more than one billion pounds of profit before tax."

The stock was down 4% at 491.4p by 0846 GMT, having dropped 12% so far this year.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE