Beach holiday demand helps lift clouds for easyJet

LONDON - Reuters

DHA photo

British low-cost airline easyJet forecast annual profit growth of up to 14 percent, helped by higher demand for beach holidays which calmed fears it had raised over its outlook.

Revenue performance in the three months to the end of June was better than easyJet had forecast in May, boosted by increased demand for flights to southern European resorts such as Malaga, Alicante and Faro from northern Europe, and Britain in particular.

The strength of the pound against the euro is making holidays on the continent particularly appealing for Britons this year. The euro hit a 7-1/2-year low against the pound last week, having shed around 10 percent against the currency since the start of the year.

EasyJet did, however, warn that it faced a series of uncertainties in future given the crisis in Greece, a bloody attack on tourists in Tunisia, the impact of a fire at Fiumicino airport in Rome and various threats of industrial action.