Budget airline easyJet said full year profits may be below previous forecasts as the company is facing an additional £45 million fuel bill as energy costs soar.
First half results are likely to be in line with previous guidance of a two to three per cent decline in profit margins, but the company's forecast of a 20 per cent improvement in full-year pre-tax profits are unlikely to be met, easyJet said.
The current forward price for jet fuel for summer 2008 is over $1,000 per tonne, the low-cost carrier said.
Despite easyJet having 40 per cent of its fuel requirements hedged at $750 per tonne, these prices would still see the airline forking out an additional £45 million in the second half.
Andy Harrison, easyJet chief executive, said: "Of course the price of fuel will hit all airlines and we remain convinced that the combination of our new fuel efficient aircraft fleet, together with the proven strength of the easyJet business model will mean that we shall emerge as winners in a high oil price environment."
The revenues continue to perform well with February load factors improving 1.8 percentage points versus the prior year to 84.8 per cent and trading for Easter continues on track.
The Bedfordshire-based airline said revenues continue to perform well with February load factors improving 1.8 percentage points versus the prior year to 84.8 per cent and trading for Easter continues on track.
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