Annual results from easyJet are set to show profits taking off

Annual results from budget airline easyJet are set to show profits taking off next week, while Mothercare reports back after a competitive half-year on the high street

Shares in easyJet soared to a record high yesterday
easyJet delivers full-year results on Tuesday

Annual results from budget airline easyJet are set to show profits taking off next week, while Mothercare reports back after a competitive half-year on the high street.

Budget airline easyJet delivers full-year results on Tuesday with annual profits expected to have soared by up to half.

The Luton-based carrier cheered investors last month as it said earnings for the 12 months to the end of September were expected to reach between £470m and £480m, against a figure of £317m last year.

It also said revenues per seat looked set to have grown by around 6%.

EasyJet enjoyed a strong summer for holiday bookings despite Britain basking in the warmest heatwave for years.

It has shrugged off fears that it might face the same kind of turbulence as rivals Ryanair, which has recently issued two profit warnings in as many months.

The Irish carrier has warned that its earnings this winter would be hammered by downward pressure on fares and has said factors such as increased competition, Europe’s continued economic problems, and the hot weather have had an effect.

But EasyJet’s latest passenger figures showed continued improvement, showing that it carried 5.53 million in October, up 5.4% from the same month a year before.

EasyJet was recently given the green light to modernise its fleet after shareholders backed plans to order up to 235 new aircraft - in spite of objections from founder Sir Stelios Haji-Ioannou.

It will upgrade and expand its fleet by acquiring 135 Airbus planes over the next nine years.

The purchase is expected to allow easyJet to boost passenger numbers from the current level of just over 60 million a year to around 90 million.

Numis Securities analyst Wyn Ellis said the carrier looks to have enjoyed a “very strong year” and that its operational model leaves it well-placed for good progress in the next, with an attractive growth opportunity in Europe.

Baby products retailer Mothercare is expected to overcome tough trading in the UK to post a sharp improvement in half-year results on Thursday. The group saw UK like-for-like sales slide 1.9% in its second quarter and warned profit margins were being squeezed amid a highly promotional market in home and travel products. It admitted trading conditions were tougher than expected on UK high streets - a blow after the group had begun to halt sales declines at the end of its last financial year, when like-for-like trading was held flat.

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