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The Markets
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The Markets
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The Markets
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Leisure, gaming and gambling

Paris attacks set to cast a shadow over easyJet results

No-frills carrier set to face questions about possible impact of attacks

The Paris attacks are likely to cast a shadow over full-year results at European no-frills airline easyJet (LON:EZJ) on Tuesday.

Investors are set to quiz the carrier's bosses on the potential business implications of the atrocities in the French capital on Friday night.

On Monday, shares in the Luton-based airline, its rivals and the wider transport sector fell amid concerns about the impact on tourism in France and further afield.

CMC Markets analyst Jasper Lawler said: "The possible re-introduction of border controls and other tighter forms of security as well as the potential knock to traveller confidence has sent travel and leisure stocks lower.

"Air France shares dropped sharply, dragging shares of easyJet and IAG down with them. Travel companies such as TUI travel and luxury brands such as Burberry are top fallers on the potential impact the terror attack could have on tourism."

EasyJet is tipped to unveil better-than-expected profits on Tuesday. In a trading update in early September, management raised pre-tax profit expectations to between £675mln and £700mln for the year to September 30.

That contrasted with previous guidance of between £620mln and £660mln, and up from £581mln in 2014.

A lower fuel bill, an approximate 6% growth in seat capacity and late season UK demand for its beach destinations all buoyed performance.

On the downside, management expected exchange rate movements to have dragged the numbers down by about £20mln compared to the prior year.

Keith Bowman at Hargreaves Lansdown said: "With financial metrics largely outlined, management outlook comments will be closely read. Ahead of the results, analyst consensus opinion continues to point towards a buy." Shares in easyJet fell 7p to 1783p in afternoon London trading.

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