Budget airline easyJet is expected to shrug off costs of French air traffic control strikes over the summer to post another strong rise in annual profits on Tuesday.
The Luton-based carrier cautioned in July that the strikes, which disrupted travel for tens of thousands of passengers, would create “significant” costs for all airlines.
It said the walkouts in early July forced it to cancel 660 flights and cost it £15 million.
Threats of further strikes in October were eventually called off.
Despite the hit, and higher fuel costs, most analysts are forecasting easyJet to report a rise in headline pre-tax profits to £650 million for the year to the end of September, up from £610 million in the previous year, according to AJ Bell.
Analysts are pencilling in another increase to £740 million for 2025-26.
EasyJet’s burgeoning holidays arm will have been a boost to business, with the group already guiding for more than £235 million in profits for the full year, which would be more than 24% higher.
But its comments on booking patterns and consumer confidence will be watched closely after rival Jet2 said on reporting its half-year results that holidaymakers were continuing to book later to departure date.
Richard Hunter, head of markets at Interactive Investor, said a recent impressive performance from easyJet’s holiday arm “chimes with the group’s value-conscious appeal and the increasing body of evidence which tends to suggest that the family holiday remains almost sacrosanct and outside of normal budgetary restraints”.
But easyJet’s shares have failed to take off despite resilient trading.
Mr Hunter added: “For all the progress, the shares have fallen by 18% so far this year, putting easyJet potentially in the firing line for demotion from the FTSE 100 in the upcoming December reshuffle.
“Indeed, the share price remains down by 62% from pre-pandemic levels, let alone the record highs of 10 years ago, since which time the shares have fallen by 71%, resulting in the group flitting in and out of the premier index.”
