Budget airline easyJet reaped the benefit today as Londoners dashed abroad to grab some late sun after the Olympics, putting the firm on course for record profits.
Shares in the airline, which carries 58 million passengers a year, jumped 3% as it flagged up pre-tax profits of as much as £320 million, £20 million more than it thought in July.
The late boost following the wettest summer for 100 years saw bookings surge, with 500,000 heading to Malaga, Alicante and Faro alone.
The update pleased the City as analysts immediately marked up their forecasts. Numis analyst Wyn Ellis said: “Before the summer they were a little bit concerned about disruption from the unions but it was a very smooth month. If you look at the likes of TUI Travel and Thomas Cook, they saw an increase in bookings after the Olympics because it was such a lousy summer.”
The profit improvement comes despite the firm absorbing an extra £230 million in fuel costs during the financial year. There are also further headwinds ahead from another £40 million in fuel costs, as well as the impact of the falling euro, because around half of the carrier’s customers book in Europe.
Airport costs are also expected to increase by around £80 million, reflecting significantly above-inflation rises in charges at regulated airports in Spain and Italy as austerity measures kick in and add to the firm’s costs.
