Skip to navigationSkip to content
An EasyJet aircraft prepares to land at Manchester Airport.
Reuters/Phil Noble
Making it look easy.
PROFITS TAKE OFF

EasyJet is profiting from the misery of others

Jason Karaian
By Jason Karaian

Global finance and economics editor

The numbers: Flying high. Low-budget airline EasyJet published some bullish projections for its latest fiscal year, adding some £20 million ($32 million) to its pre-tax profit target. It now expects profit for the year ending September to be £575-580 million when it reports final figures next month.

The takeaway: Higher passenger numbers, lower fuel costs, and favorable currency trends have all helped the airline boost its results in recent quarters. Investors are also cheering the prospects for a bigger dividend, sending EasyJet’s share price up by more than 6% today.

What’s interesting: EasyJet’s strategy to attract more high-margin business travellers is working well, but the airline has also benefited from the dysfunction of competitors. Air France pilots’ two-week strike last month boosted EasyJet’s revenue by £5 million, as passengers switched to the budget carrier on shared routes. Ryanair’s costly efforts to turn around its penny-pinching reputation have also reflected well on EasyJet, even though it is no stranger to the same sharp practices.

Subscribe to the Daily Brief, our morning email with news and insights you need to understand our changing world.