LONDON (ShareCast) - (Sharecast News) - Shares in easyJet fell on Thursday despite the budget airline saying it was confident in meeting annual profit forecasts with forward bookings for the third-quarter 80% sold ahead of the key summer period.
The carrier posted a first-half loss before tax of £394m, in line with consensus, and added that current bookings were supportive of meeting full year consensus estimates. However, it cautioned that "consistent with this stage each year, there is still an important booking period for peak summer to go".

EasyJet expects full-year profits of £703m, according to a company-compiled poll.

"Losses over this period aren't surprising given the cyclical nature of easyJet's business. Much more important was the outlook for the all-important summer season, and on that front easyJet delivered," said Hargreaves Lansdown analyst Aarin Chiekrie.

"Bookings for the second half are flying high. They're running ahead of last year's pace, and solid demand means pricing is holding up well. EasyJet's doing a great job of growing its fleet, and on average, more of the available seats are being filled too."

"Given the high fixed costs associated with flying planes, keeping them as full as possible is key to profitability. Lower oil prices are also helping to keep full-year profit guidance on track, given that they account for such a significant chunk of airlines' costs."

Reporting by Frank Prenesti for Sharecast.com

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