Weaker euro boosts Easyjet earnings

(LONDON) - Easyjet could record a profit during its first half after the pound strengthened against the euro in recent months, the British budget airline said on Thursday.

The group said it may end up with a pre-tax profit of GBP 10 million ($15 million, 13.5 million euros) for the six months to the end of March. Easyjet, like its rivals, tends to post losses during the winter when it carries less passengers compared with the peak summer holiday season.

"The Board's expectation is now for a pre-tax result for the six months ended 31 March 2015 of between a loss of GBP 5 million and profit of GBP 10 million compared with the previous guidance of a pre-tax loss of GBP 10 million to GBP 30 million," Easyjet said in a statement.

The airline added that "exchange rate movements are likely to have around a GBP 20 million favourable impact... primarily due to the recent weakening of the Euro against Sterling".

The euro has come under heavy pressure in recent months, falling to multi-year lows against the pound and dollar on eurozone strains and expectations that the US and Britain would soon raise interest rates.