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LONDON, March 26 (Reuters) - British low cost carriereasyJet upgraded first-half forecasts, saying favourablecurrency moves would boost its bottom line, but said if currentexchange rates stuck, they would provide a reverse effect overthe year.
The group, which like rivals traditionally makes a loss overthe winter when fewer customers fly, said on Thursday that itcould swing to a profit for the six months to March 31, asignificant improvement on last year.
"easyJet continues to be well positioned to deliversustainable returns to shareholders due to its compellingnetwork, low cost base and strong balance sheet," chiefexecutive Carolyn McCall said in a statement.
The company, Europe's No. 2 low-cost carrier behind Ryanair, said it expected to report between a loss of 5 millionpounds ($7.45 million) and a profit of 10 million pounds for itsfirst-half, compared to guidance given in January for a loss ofbetween 10 million pounds and 30 million pounds.
That compares to the 53 million pound loss it reported inthe same period last year.
The weakening of the euro against the pound was the mainboost to its bottom line in the second quarter, it said.
It warned, however, that if those same exchange rates weremaintained across the full-year period, there would be a 20million pound adverse impact due to swing in costs and revenuesreceived in pounds and euros at different times of the year.
easyJet also maintained its plan to grow capacity by 5percent over the current financial year, even as it facesrenewed competition from its Irish rival Ryanair after itimproved its customer service and started adding more main cityairports to its routes.
It is due to publish its first-half results on May 12.
($1 = 0.6711 pounds) (Reporting by Sarah Young; Editing by Neil Maidment)
easyJet (EZJ)