easyJet profit outlook maintained but operational challenges a concern

easyJet reported a 5.3% increase in revenue in the third quarter of 2010 (three months to Jun-2010) to GBP759.2 million, with the carrier labelling the results as a “good commercial performance”. The carrier added that it continues to expect a pre-tax profit of between GBP100 million and GBP150 million in the full year, with forward bookings “in line” with the prior year with 64% of the fourth quarter seats now sold. [2648 words]

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This report contains the following subheadings:

• easyJet CEO to review growth plans
• Slight revenue growth in Jun-2010 quarter; ancillary revenue performance “behind plan”
• Operating costs “in line with expectations”
• Cash balance exceeding GBP1 billion
• Volcanic ash crisis hurts
• Majority of growth in mainland Europe
• Fleet growth of 11% expected by Sep-2012
• Mitigation of risk through hedging strategies 
• Outlook: A bunch of challenges for new CEO but profitability outlook maintained and revenues tracking in right direction

This report contains the following charts and tables:

• easyJet financial highlights for three months ended 30-Jun-2010
• easyJet’s share price growth: Jan-2010 to Jul-2010
• easyJet CEO ‘priorities and initial impressions’ at Week 4
• easyJet ancillary revenue as % total revenue: 2006 to 3Q2010
• easyJet unit revenue figures: Three months ended Jun-2010
• easyJet revenue per seat growth: 2004 to 3QFY2010
• Impact of volcanic ash on results for three months ended Jun-2010
• easyJet revenue and passenger growth: 2004 to 3QFY2010
• easyJet key market highlights and market opportunities
• Route launch dates: 2010
• easyJet fleet plan
• easyJet hedging positions: as at Jun-2010