EasyJet Shares Dive Despite First Half Profit

easyJet's share price has tumbled despite investors seeing profits for the first six months of its financial year for the first time in over a decade.

Its results for the six months to 31 March showed a profit before tax of £7m, compared with a loss of £53m in the same period last year.

EasyJet (Other OTC: ESYJY - news) confirmed the timing of Easter boosted its revenue and profits as sales fell inside the reporting period.

Revenue grew by 3.8% to almost £1.8bn while it made an average profit of 21p per seat, compared with a £1.70 loss in 2013/14.

The airline said falling fuel bills were a factor but it warned on its outlook, with summer bookings flat and strikes by air traffic controllers in France hitting current revenues and profitability.

Chief executive Carolyn McCall said: "EasyJet has delivered a record performance in the first half of the year by continuing to deliver its strategy of making travel easy and affordable for passengers.

"The profit in the half reflects the delivery of our customer-focused revenue initiatives and a strong finish to the ski season as well as the benefit we received from the lower fuel price and favourable foreign exchange movements.

"As we enter the important summer season, forward bookings are in line with last year and, as we predicted, passengers are benefiting as fares fall to reflect a more competitive operating environment and lower fuel costs."

In an interview with Sky News, she admitted the series of strikes in France had damaged revenues but not just for easyJet.

She said: "I'm very much hoping the French government can resolve the differences with the air traffic controllers and we're hearing reassuring noises about that."

Fears for the company's outlook, particularly after strikes took their toll in April , were blamed for dips of more than 9% in the company's share price on Tuesday.