As easyJet announced increased profit guidance for the full year, its shares soared to a four-year high last week. (7/10/2006)

The airline had stated: The improved revenue outlook leads us to increase our profit guidance. Previously our profit guidance for the full year was growth of 10-15 percent; we now expect pre-tax profit growth for the full year to be in the range of 40-50 percent.?

easyJet, which carried nearly 2.59 million passengers last month, up 15.6 percent from a year earlier, said revenue-per-seat was 17 percent higher from April through June than in the same period in 2005, helped by the timing of the busy Easter holiday break.

The improved revenue outlook leads us to increase our profit guidance,?easyJet chief executive Andy Harrison.

Harrison said it expected revenue per passenger to rise by three-four percent having previously forecast it would be flat for the year. However, cost reductions will not be as great as initially predicted. It now expects unit costs, excluding fuel, to fall three percent rather than five percent.

Its shares soared as much as 10 percent to a four-year high of 430-1/4 pence.

Analysts at Merrill Lynch upgraded their recommendation on easyJet to buy?from neutral?

JPMorgan analyst Chris Avery reportedly said: While the guidance upgrade was expected today, the size of it impressed even bulls like us.?