EasyJet lifts guidance despite pressures EasyJet on Wednesday raised its 2011-12 profit guidance by 9 per cent but warned that it faced significant cost increases in the coming year. Europe's second-largest low-cost carrier by revenues said it expected to report pre-tax profit of between £310m to £320m for the year to September 30, up from a previous estimate of £280m-£300m. However, easyJet highlighted cost challenges for 2012-13, including a bigger fuel bill, negative foreign exchange movements and higher airport charges. The upgraded profit forecast for 2011-12 is rooted in higher than anticipated revenue per seat. The company also cited late bookings after the Olympic Games, including strong demand for flights to sunny destinations following poor weather in northern Europe. EasyJet also benefited from unusually low levels of industrial action at European airports in 2011-12, and Carolyn McCall, chief executive, said the company was on track to report its highest full-year pre-tax profit. "EasyJet has had a strong summer performance, which has enabled us to deliver another good year of returns and growth for shareholders," she added. In early afternoon trading, easyJet shares were up 4.6 per cent at 621p. Cost concerns in 2012-13 are led by an expected £30m-£40m rise in easyJet's fuel bill, £40m to £60m of negative impact from the euro's weakness, and £80m of higher charges at Spanish and Italian airports. Gerald Khoo, analyst at Espírito Santo, said: "These headwinds will make it difficult, but not impossible, for the group to grow earnings in [2012-13]." However, he added that easyJet's revenue prospects were good, partly because it was targeting business travellers as well as consumers seeking cheap flights. Andrew Light, analyst at Citi, expected easyJet to announce, at its full-year results, a dividend amounting to 20 per cent of net income, adding that the payout should rise to 30 per cent over the next few years. Sir Stelios Haji-Ioannou, the company's founder and largest shareholder, declined to comment on easyJet's trading update. EasyJet's announcement in 2011 that it would pay maiden dividends worth £190m was a victory of sorts for Sir Stelios, who has spent the past three years saying the company should curb its fleet expansion and instead focus on returning cash to shareholders. EasyJet's management is expected to decide late this year or early next year whether to order new aircraft, with the fleet currently at 213 jets. It has options to increase the fleet to 259 by 2017.