LOW-COST airline Easyjet yesterday said that it had raised its first-half guidance after outperforming expectations for passenger revenue. Total revenue for the quarter rose nearly 10 per cent to £1.43bn, up from £1.3bn in the same period last year. Passenger numbers rose 2.8 per cent to 22.2m, driven by a one per cent increase of capacity to 24.3m seats. Total airline revenue per seat rose 8.7 per cent to £58.60, up from £53.90 in 2018. Cost per seat rose 4.3 per cent due planned lower growth, new aircraft deliveries and French national strikes, which saw 813 flights cancelled. The airline added that 75 per cent of their seats for the first half of the year had been added.

Richard Hunter, head of markets at Interactive Investor, commented: "Easyjet has started its new year in fine fettle, with an ongoing focus on costs and increased revenues propelling performance."

Easyjet said that the collapse of Thomas Cook had helped the firm, which now predicts mid-to-high single digit revenue growth for the six months to March.

In November's results the airline announced the launch of a package holiday business, which it expects to break even in its first year of trading.

Easyjet was among the FTSE's top movers yesterday, rising 4.4 per cent.

EASYJET P 21 Jan 1,490 1,520 1,500 1,480 1,460 1,440 15 Jan 16 Jan 17 Jan 21 Jan 20 Jan

(c) 2020 City A.M., source Newspaper