Easyjet says lower pound to cut profits by ?105m

Easyjet says lower pound to cut profits by ?105m

Easyjet has said the lower pound will cut its profits by a larger-than-expected ?105m this year.

Its forecast came as it reported "solid" trading over the final three months of 2016.

The airline said it had increased passenger capacity by 8.6%, and passenger numbers had risen by 8.3% to 17.4 million.

But stripping out the effects of the fall in the pound, its revenue per seat was down by 1.2% to ?51.64 per seat.

Easyjet's chief executive, Caroline McCall, said "Easyjet has delivered a solid first quarter with revenue, cost and passenger numbers in line with expectation. This is despite tough pricing and operating environment."


The pound has fallen by about 17% against the dollar since the Brexit vote in June last year. In November, Easyjet had estimated the weaker pound would cost it ?90m in 2017.

Easyjet is in the process of establishing a separate presence on the European mainland, in readiness for when the UK leaves the EU.

That could mean the UK losing Europe's internal "open sky" arrangement.

Since 1994, any EU airline has been free to fly between any two points in Europe, something that enabled companies such as Easyjet and arch-rival Ryanair to grow to their present size.

Current EU flying rights might have to be renegotiated and the new company would ensure Easyjet could operate within the EU, rather than having to fly in and out of the UK on every route.

It said setting up a new European entity would cost it ?10m

Easyjet, which is one of the biggest 100 in the UK, is planning to keep its London listing and Luton headquarters.

It has bases across 11 UK airports and flies more than 800 routes on its network across Europe, the Middle East and North Africa.



Add Comment

all comments

  Other news

more
Russia sanctions: EU vows to retaliate over US measures

Russia sanctions: EU vows to retaliate over US measures..

26-Jul, 11:00

The European Union has expressed concern about US plans to impose fresh...

U.S. Muslims believe in American dream despite discrimination

U.S. Muslims believe in American dream despite discrimination..

26-Jul, 15:30

Muslims break their Ramadan fast after sunset by eating halal Mexican...

German business lobby urges EU action against new US sanctions on Russia

German business lobby urges EU action against new US sanctions on Russia..

26-Jul, 06:50

A US move to expand sanctions against Russia may have an adverse impact...

Sperm count drop 'may lead to human extinction'

Sperm count drop 'may lead to human extinction'..

25-Jul, 20:50

Humans could become extinct if sperm counts in men continue to fall at...

'This is a democracy': Int'l court may be next for Duterte

'This is a democracy': Int'l court may be next for Duterte..

16-May, 01:39

Philippine President Rodrigo Duterte acknowledged Tuesday that...

Turkmenistan, Uzbekistan to cooperate on transport, energy

Turkmenistan, Uzbekistan to cooperate on transport, energy..

06-Mar, 14:39

The ex-Soviet nations of Turkmenistan and Uzbekistan have agreed to...

Major newspapers in Serbia hit stands with same front pages

Major newspapers in Serbia hit stands with same front pages..

30-Mar, 13:07

Only days before Serbia's presidential election, seven major newspapers...

China announces goal of AI leadership by 2030

China announces goal of AI leadership by 2030..

21-Jul, 01:13

China's government has announced a goal of making the country a global...