Analysts15 May 2017 16:37
05/15/2017 | 07:12am EDT
BUDGET airline EASYJET looks set to deepen half-year losses this week, as it grapples with currency headwinds from the Brexit-hit pound and costs linked to launching a new European base.
Analysts expect losses at the low-cost carrier to expand to around £210 million, in contrast to a £24m loss over the period last year - with the lion's share of the blow coming from sterling's weakness.
The half-year results are also expected to include a £10m hit for an air operation certificate.
The group is in the midst of setting up a new operating company in mainland Europe and applying for a new licence to secure flying rights for 30% of its routes after Brexit.
While tomorrow's results could reveal a tough period for the firm, the airline will look to bounce back over the summer by capitalising on the trading woes of rival carriers.
However, Damian Brewer, analyst at RBC Capital Markets, said the widening losses for the first half of the year will make it harder for the firm to hit full-year targets.
"We see first half profit-before tax deteriorating to a £210m loss, potentially. However, the concern to us is that to make the company outlook implied £360-£370m full year profit before tax, a significant profit recovery will be required," he said, EasyJet said in January that the weak pound was expected to cost it around £105m over 2016/17