A weak euro and plunge in the oil price have left easyJet (EZJ) flying high in 2015. While airlines typically make a loss over the winter period, easyJet has tweaked its half-year guidance to allow for a potential half-year pre-tax profit. Having previously expected an interim loss of between £10m and £30m, chief executive Carolyn McCall said the group could now land somewhere between a loss of £5m and pre-tax profit of £10m. Last year, easyJet made a £53m loss.
The group's fuel bill should be £35m lower in the six months to the end of March 2015, compared with the same period last year. This shows how airlines are starting to benefit from the 50 per cent plunge in oil prices since last summer. Currency movements are also set to generate a £20m windfall by the time first-half results roll around in May. Analysts have pointed out that should the company report a pre-tax profit at the results, it would be the first time it has done so since 2002.
Meanwhile, full-year results from newly listed Wizz Air (WIZZ) are also due in May. After a strong fourth quarter, the board said expectations are "in line" despite an ongoing restructuring in Ukraine. The Hungary-based airline initially cancelled its IPO last summer, but as economic conditions for airlines have improved it finally came to market at the start of March at a price of 1,150p apiece. Since then, the share price has accelerated to 1,350p.
Wizz competes against a clutch of small budget carriers in Europe, including Vueling (ES:VLG) and Norwegian Air Shuttle (NO:NAS). It concentrates on connecting different parts of Europe, a market that is largely dominated by the duopoly of easyJet and Irish carrier Ryanair (RYA). It operates a fleet of 55 Airbus A320 aircraft and offers more than 360 routes from 20 bases across 37 countries. Last year, it claims to have carried more than 15m passengers between 100 destinations. Most recently the group added a new aircraft to its Bulgarian operation and started operating from its ninth airport in Romania.
