Easyjet profits hit by "extraordinary events"

'‹Low-cost airline easyJet has revealed it will take a hit of more than £200'‹m from the plunging pound and a series of "extraordinary events" after terrorist attacks and air traffic control strikes '‹took their toll.
By The Newsroom
Published 6th Oct 2016, 08:47 BST
Updated 25th Oct 2016, 20:09 BST
EasyJet said it was expecting profits for the year to September 30 to nosedive by nearly a third, to between 490m and 495m.EasyJet said it was expecting profits for the year to September 30 to nosedive by nearly a third, to between 490m and 495m.
EasyJet said it was expecting profits for the year to September 30 to nosedive by nearly a third, to between 490m and 495m.

The carrier warned it will be left nursing at least £125​m in lost profit after a combination of terror attacks across Europe, Egypt and Tunisia as well as air traffic control strikes in France and political turmoil in Turkey.

EasyJet added that the tumbling value of the pound since the Brexit vote - hitting fresh 31-year lows against the US dollar this week - would cost it £90m.

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The group said it was expecting profits for the year to September 30 to nosedive by nearly a third, to between £490​m and £495​m.

It has slashed fares by around 9​ per cent​ year-on-year to boost demand as it has also battled a price war with Ryanair.

EasyJet boss Carolyn McCall said: "We have been disproportionately affected by extraordinary events this year.

"The current environment is tough for all airlines, but history shows that at times like this the strongest airlines become stronger. That is why we will continue to invest for the long-term success of the business."

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The travel industry has been knocked hard by a string of terrorist attacks in Belgium and France as well as Tunisia, while airlines are still not flying to Egyptian resort Sharm el Sheikh after a Russian aircraft crashed soon after take-off.

Related topics:EasyJetFranceTurkeyEgyptEuropeBrexitBelgium