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EasyJet warns on profit after Brexit, currency movements

Staff writer |
EasyJet warned that profits were lower than expected in the third quarter and that UK decision to Leave the EU is likely to mean revenues in the second half of the year will be lower than last year.

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Costs will be £25m higher due to oil and currency movements. Following the Brexit vote, the budget airline predicted "additional economic and consumer uncertainty is likely this summer and as a consequence it is expected that revenue per seat at constant currency in the second half will now be down by at least a mid-single digit percentage" compared to the second half of 2015.

Pre-tax profit in the third quarter will be take a hit of around £28m after it had to cancel 1,061 flights during the third quarter so far, including more than 700 flights in June, from issues such as the French air traffic controller strike and congestion on the runways at London Gatwick.

As a result of switching passengers into other flights, third-quarter revenue per seat at constant currency will fall by around 8.6%, compared to the near-7% decrease given as guidance at the half-year results.

EasyJet said increased economic and consumer uncertainty was likely this summer after the UK's Brexit decision, which for the company will result in an expected decline in revenue per seat at constant currency of "at least a mid-single digit percentage" year-on-year.

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