- EasyJet said it expected to report first-half headline loss before tax, in line with its previous guidance, but delivered a more cautious outlook on the second half as it warned of increasing softness in ticket yields amid Brexit and macroeconomic uncertainty.

'Whilst easyJet will deliver H1 results in line with expectations, macroeconomic uncertainty and many unanswered questions surrounding Brexit are together driving weaker customer demand in the market, such that we are seeing increasing softness in ticket yields in the UK and across Europe,' easyJet said. 'Given this uncertainty our outlook for H2 is now more cautious.'

EasyJet expected to deliver a first half performance in line with the guidance given in the Q1 2019 trading statement on 22nd January 2019, with an expected first half headline loss before tax of around £275m.

Total first half revenue is expected to grow by circa 7.3% to circa £2,340m with seat capacity increasing by circa 14.5% to circa 46.2m as easyJet 'continue to strengthen its position in key markets as well as completing the annualisation of its flying at Berlin Tegel airport,' the company said.

Underlying revenue was expected to be positive, but offset by the impact of IFRS 15, the move of Easter into the second half as well as the dilutive impact of flying at Berlin Tegel and the prior year impacts from the Monarch administration and Ryanair cancellations.

Second-half revenue per seat at constant currency was expected to be slightly up, reflecting weakening Q3 underlying demand and an expected year on year uptick in Q4 driven by a programme of yield initiatives and an assumption of a more certain Brexit outlook.

There was no change to guidance for full year headline cost per seat excluding fuel at constant currency, which was still expected to be about flat.

'EasyJet has performed in line with expectations in the first half. We have flown around 42 million customers with a significantly reduced number of cancellations and continued high levels of customer satisfaction,' said Johan Lundgren, easyJet Chief Executive.

'Now that the EU Parliament has passed its air connectivity legislation and together with the UK's confirmation that it will reciprocate, means that whatever happens, we'll be flying as usual. I am pleased that we have also made progress on our European ownership position which is now above 49%.' Story provided by