StockMarketWire.com - Easyjet said it expected annual profit at the upper end of its previous guidance, but warned of a rise in costs.

The budget airline also said that capacity growth for the next fiscal year would be at the lower end of its historic range.

Headline pre-tax profit for the year through September was expected at between £420m and £430m, in the upper half of previous guidance of £400m to £440m.

Costs, however, would jump 12%, due increased capacity, higher fuel expenses and adverse FX movements.

Total revenue per seat at constant currency for the full year would decrease by about 2.7%, despite an increase of around 0.8% in the second half.

Passenger numbers for the full year increased by 8.6% to 96m, driven by an increase in capacity of 10.3% to 105m seats, the company said. The load factor for the full year would decrease by 1.4% to 91.5%.

'We have continued to invest in operational resilience, with the programme successfully reducing the impact of disruption on our operations. As a result, we expect to report a fall in headline cost per seat for the year, excluding fuel at constant currency,' EasyJet said.

Looking ahead to fiscal 2020, the company said first-quarter forward bookings were currently in line with the same time last year.

EasyJet's scheduled year-on-year capacity growth in the first quarter was currently around 2%.

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