EasyJet blames ‘competitive environment’ as winter losses grow
No-frills carrier easyJet said its losses grew by 52 per cent for the latest quarter on the back of investments in Italy and a “competitive environment”.
The Luton-based group reported a headline pre-tax loss of £93 million for the three months to December 31, up from £61 million a year earlier.
This came despite a 7 per cent rise in passenger numbers for the period, as well as growing profits at package holiday arm easyJet holidays and a continued reduction in costs from flight disruption.
EasyJet attributed its financial performance to it being the first winter running bases at the Italian airports of Milan Linate and Rome Fiumicino.
It previously stated this would require an estimated investment of £30 million, but it was “confident that these strategic investments will see revenue maturity over the coming years”.
In relation to its latest results, easyJet added that it will take time for “capacity investments to reach maturity”, and that there is a “continued competitive environment in specific markets”.