EasyJet board bows to Stelios over growth
BUDGET airline easyJet predicted a full-year pre-tax profit of £25-50m yesterday, despite the massive industry slump, but bowed to pressure from biggest shareholder Sir Stelios Haji-Ioannou and halved its future growth rate target to 7.5 per cent.
Stelios had rowed with the company’s board late last year over his worries about the expansion plans of the airline during a downturn.
The carrier said revenues had risen 12 per cent to £721m in the third quarter and, although August would be crucial, it was confident of finishing its financial year to the end of September in the black.
“This has been a resilient third quarter and our position has continued to strengthen,” chief executive Andy Harrison said “We expect to be one of the few airlines to make a profit this year,” he added.
Irish rival Ryanair warned earlier this week that profits would fall to the lower end of expectations, although its anticipated profit of at least €200m (£149m) is still much higher than easyJet’s.