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Budget airline easyJet expected to reduce costs French Air traffic control called off a summer strike to register another strong rise in annual profits on Tuesday.
The Luton-based carrier warned in July that the strike, which disrupted travel for thousands of passengers, would create “significant” costs for all airlines.
It said the walkout in early July had caused it to cancel 660 flights and cost it £15 million.
Threats of further strikes were eventually canceled in October.
Despite the hit and higher fuel costs, most analysts expect easyJet’s headline pre-tax profit to rise to £650 million for the year to the end of September, from £610 million in the previous year, according to AJ Bell.
Analysts are planning a further increase to £740 million for 2025–26.
EasyJet’s growing holidays arm will boost business, with the group already guiding for full-year profits of more than £235 million, which would be up 24%.
But its comments on booking patterns and consumer confidence will be closely watched after the rival jet2 When reporting its half-year results it said holidaymakers were continuing to book beyond their departure date.
Richard Hunter, head of markets at Interactive Investor, said the recent impressive performance of easyJet’s holiday arm “coincides with the group’s value-conscious appeal and a growing body of evidence that suggests family holidays are almost sacrosanct and outside the usual budgetary constraints”.
But easyJet shares have failed to advance despite resilient trading.
Mr Hunter said: “For all the progress, shares have fallen 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 62% below pre-pandemic levels, let alone the record high set 10 years ago, with shares down 71% since that time, resulting in the group moving in and out of the major indexes.”