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Air France strikes boost easyJet

EasyJet has reversed its July profit warning after strikes at Air France sent customers to the budget carrier.
October 3, 2014

Budget airline easyJet (EZJ) has reversed a profit warning it issued in July. At the start of the summer, easyJet revised its 2014 financial year pre-tax profit forecasts down to £545m to £570m.

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But a strong summer season and a £5m boost from the Air France strikes has allowed easyJet to revise up its guidance - it now expects pre-tax profit for 2014 of £575m to £580m. The airline also intends to stick with its revised dividend policy, with a new payout ratio of 40 per cent. This is up from 33 per cent in 2013.