Sign up Australia
Proactive Investors - Run By Investors For Investors

easyJet boss confirms discount airline’s continued interest in at least parts of Italian carrier Alitalia

easyJet PLC’s chief executive Johan Lundgren told Corriere della Sera that easyJet has not yet talked with the Italian government but is open to holding discussions
easyJet plane
The report comes in the wake of a trading update on Wednesday in which easyJet raised its full-year profit guidance

easyJet PLC’s (LON:EZJ) chief executive has confirmed the discount airline’s continued interest in at least parts of Alitalia, after Italy's transport minister said the Italian airline will remain under majority state control but needs a partner, according to a newspaper report.

Johan Lundgren told Corriere della Sera that easyJet has not yet talked with the Italian government but is open to holding discussions.

READ: easyJet shares lift off as it raises profit guidance despite impact of air traffic control strikes

The report comes in the wake of a trading update from the FTSE 100-listed airline on Wednesday in which easyJet raised its full-year profit guidance as cost savings offset the impact of having to cancel more flights in the third quarter due to industrial action and severe weather.

The budget airline now expects headline pre-tax profit – including the operations at Berlin Tegel Airport that it agreed to buy from insolvent Air Berlin last October— for the 2018 financial year of £550mln to £590mln, up from the £530mln to £580mln range it estimated in its first-half results in May.

Richard Hunter, head of markets at interactive investor, commented: “The stars are aligning for easyJet this year, as a number of factors are playing into its hands.

“The demise of competitors such as Monarch, Air Berlin and Alitalia has opened up the field, ancillary revenue has increased due to a change in passenger behaviour (increasingly paying for additional baggage and allocated seating) and load factors remain high.

He added: “Passenger numbers have increased by 9% and this combination of tailwinds has enabled the group to increase revenues by 14% in the period and, equally importantly, upgrade profit guidance for the full year. In turn, this should increase the dividend payment, even if the projected yield of 3.3% is not especially inspiring.

“As the summer season gets into full swing, further grounds for optimism persist.”

In afternoon trading, easyJet shares were 2% lower at 1,608.5p.

View full EZJ profile View Profile

easyJet plc Timeline

Related Articles

Festival crowd
August 20 2018
There could be a potential uplift of in both revenue and underlying earnings if the firm manages to capture a slice of the UK's 4mln festival-goers
ZoomAway Travel Inc embracing blockchain, which is set to push out middle man in hospitality and act
January 12 2018
The firm plans to begin rolling out cryptocurrency payments into its white label and registration management system (RMS) clients
Oil pollution
July 03 2018
A name change might be in order if PCG pulls the trigger on two investments it is mulling

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use