Is There Turbulence Ahead for EasyJet?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Nov. 19 (Bloomberg) -- Bloomberg's Caroline Hyde previews EasyJet's earnings report. She speaks on Bloomberg Television's "Countdown." (Source: Bloomberg)

Correspondent caroline hyde has seen a lot of excitement.

There has been euphoria over the fact there are record rough it's, up fifth -- record profits up 50%. the focus on business travelers.

They have flex the tickets, a route to malan -- milan.

They have repeat users, and there has been a significant focus on cost cuts.

Revenue haven't seen that much more.

Talk us through some of the challenges because they worried about some of them in october.

They did.

There were three she was trying to highlight in particular.

Also currencies, the foreign exchange currencies.

The pound being stronger.

That is going to be 10 million as well hitting in terms of profitability, and all in all we expect a far more hostile environment for the winter.

They had no less than two profit warnings for the company in less than two months.

Less than a month ago they were saying fares were going to drop 10%. there are pressures of competition.

You have pegasus airlines, all of these entrants coming into the discount area and deutsche bank bank saying this is going to be the first winter that you actually see a significant improvement in the rise in capacity.

It is not going to be doom and gloom.

Remember easyjet has focused on the business traveler.

It is the wing ryan air has been trying to copy.

-- something ryanair has been trying to copy.

Economic problems are still right across europe.

You have to tempt them to buy tickets with you.

It is protected to a large extent.

They have already sold a quarter of the seats.

They upped the profit forecast, and analysts still see improvement.

Easyjet could rise 14%, but let's hear about some of the challenges.

We look forward to chatting

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change