``Following a successful proof-of-concept trial in 2005 with easyJet, Europe`s leading low-fares airline, Mezzo Movies is now working with a number of major airlines around the world to provide hand-held in-flight entertainment solutions in time for this summer season.``

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EasyJet`s Harrison Lifts Profit Outlook

Chris Noon, 07.07.06, 11:13 AM ET

London - Andy Harrison, chief executive of budget air carrier easyJet -- known for schlepping British travelers to exotic locales such as Bordeaux, Istanbul, Rimini and Rijeka for the price of a CD--made a hefty upgrade to the company`s full-year profit expectations, saying the final figure could be some 50% higher than expected.

Rising ``ancillary`` revenues--airlinespeak for sundries such as on-board snacks and drinks--are the principal reason for the Luton-based firm`s sunnier outlook. Harrison`s announcement sent the ``no-frills`` airline`s shares up 6% in early Friday trading.

Harrison, who was previously CEO of the U.K. motoring organization RAC before it was taken over by insurance giant Aviva, has also increased load factor, or the average amount of seats filled on each flight, by 2 percentage points, to 87.6%. The firm said it carried nearly 2.59 million passengers in June, a 15.6% rise from a year earlier. Earlier this week, rival Ryanair (nasdaq: RYAAY - news - people ) said its June passenger count rose 23% in June, to 3.67 million, while its load factor remained static at 87%.

EasyJet has been flying high recently: a month ago it reached a new three-year wage deal for 1,500 cabin crew workers, and earlier this week it began service to Marrakesh, Morocco, in a bid to tap into the thirst for budget travel beyond Europe.

The company was founded by the recently-knighted Monaco-based entrepreneur of Greek-Cypriot origin, Sir Stelios Haji-Ioannou.

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Easyjet sees FY profits rising between 40 pct and 50 pct UPDATE

07.07.2006, 03:46 AM

LONDON (AFX) - No-frills airline easyJet PLC said full-year revenues and profits would be higher than expected after a good performance across its network.

The Luton-based carrier said it expects annual passenger revenue per seat to rise between 3 pct and 4 pct for the full year and growth in ancillary revenue per seat of about 30 pct.

It said the improved revenue outlook had led it to increase its profit guidance, with pretax profit growth now expected to be in the range of 40-50 pct against previous expectations of 10-15 pct.

The number of earned seats flown in June rose 15.6 pct to 2,990,169 while the load factor -- how full the company`s aircraft were -- increased by two percentage points to 87.6 pct.

In the 12 months to June 2006, the number of earned seats flown rose 13.5 pct to 32,122,137, although the load factor fell 0.7 percentage points to 84.4 pct.

Total revenues for the year rose by 21.8 pct to 1.535 bln stg.

For the three months from April to June, total revenue per seat flown was up 17 pct compared with the same period last year.

EasyJet said this reflected underlying revenue strength as well as being partly attributable to the timing of Easter, which did not fall in the comparative quarter in 2005.

Chief executive Andy Harrison said the group`s need to sub-charter a limited number of aircraft in the short term, to support its busy summer period and fulfil its schedule, would impact costs in the second half.

Harrison said the company now expected costs excluding fuel per seat flown to fall by about 3 pct for the full year, compared to 2005.

`Despite hesitations about the effect of the World Cup on non-Germany travel, we have seen good performances throughout our network,` he added.