easyJet Sees Lower Profit On Currency, Security

UK low cost carrier easyJet announced lower expected profit for the current financial year as “extraordinary events” weighed it down.

Full year profit before tax is expected to be between GBP£490 million and GBP£495 million for the year to end September 2016.

The airline said the weaker pound will cost it about GBP£90 million, in both the financial year just ended and the year to September 2017.

“We have been disproportionately affected by extraordinary events this year”, chief executive Carolyn McCall said.

“The current environment is tough for all airlines, but history shows that at times like this the strongest airlines become stronger.”

easyJet flew 22 million passengers in the last quarter, but lower ticket prices meant revenue per seat was down by 8.7 percent. Load factor in the quarter was 93.9 percent.

Capacity increased by 6.1 percent in the quarter, compared to last year. It expects to grow capacity by a further 8 percent for the year to end September 2017.

The budget carrier said its second half fuel bill is expected to drop by between GBP£75 million and GBP£80 million compared to 2015.

The cost per seat, excluding fuel, is expected to increase by around 1 percent for the financial year to September 2017 it said.

Many European airlines have seen a hit to demand from attacks in Europe and North Africa. The UK’s vote to leave the European Union is also causing uncertainty.