British low-cost airline easyJet has predicted a full-year pretax profit of 25-50 million pounds ($41-$82 million) despite the severe industry downturn, while maintaining its fleet growth plans to 2011.
The carrier said revenues had risen 12 percent to 721 million pounds in the third quarter and, although August would be crucial, it was confident of finishing the financial year to the end of September in the black.
The shares, down 1.6 percent this year, entered positive territory for 2009 with a 2.4 percent rise to 284.5 pence by 1127 GMT, valuing the business at 1.2 billion pounds.
"This has been a resilient third quarter and our position has continued to strengthen … we expect to be one of the few airlines to make a profit this year," Chief Executive Andy Harrison said in a Wednesday statement.
Irish rival Ryanair warned the market earlier in the week that its profits would fall to the lower end of expectations as it slashed fares to fill its planes, although its anticipated profit of at least 200 million euros ($282.9 million) is still well above easyJet's.
Full service airlines such as British Airways are battling record losses and refusing to give any forecasts.
"(EasyJet) is performing well given the current economic environment but a sustained downturn could clearly delay a profit recovery," Gert Zonneveld, analyst at Panmure Gordon, said in a note.
EasyJet said it still planned to have nearly 200 aircraft by September 2011, up from 177 at end of June this year, in line with growth plans laid out in May.
The plan included a new figure of 207 aircraft by 2012, and a pledge to grow at 7.5 percent a year for the medium term — historically slower than previous years.
The carrier has been embroiled in a row with its founder and biggest shareholder Stelios Haji-Ioannou for months over the rate of the airline's expansion, with the entrepreneur arguing that the industry downturn should be treated with extra caution.
But easyJet said the board — which includes the non-executive director Stelios — had agreed the current strategy, but would continue to view fleet planning decisions in light of market conditions.
"Stelios is comfortable with the current growth strategy and fleet plan … it's not something which is set in stone. The recession hasn't affected passenger demand as much as some had feared, but consumer confidence is a fragile thing at the best of times," a spokesman for the businessman said.
Stelios also appointed a new ally to the board in Bob Rothenberg, an accountant.
EasyJet said its cash and money market deposits totalled nearly 1 billion pounds. Passenger numbers grew 2.8 percent in the third quarter to nearly 12 million.
