Brexit, terrorist attacks hit easyJet quarterly revenue

The economic fallout from Britain's vote to leave the European Union, on top of passengers' concerns after recent terrorist attacks, helped cause a slump in revenue for budget airline easyJet in the three months to June, the company said on Thursday.

Total revenue from April to June fell to 1.2 billion pounds (1.6 billion dollars), down 2.6 per cent from the same period of 2015, as increased seat capacity was "offset by the impact of significant external events," easyJet said.

Passenger volume rose by 5.8 per cent to 20.2 million, but revenue per seat dropped by about 8 per cent. The falling pound has also increased fuel costs since the Brexit vote on June 23, it said.

"Commercial and operational performance during the quarter was impacted by the Brussels [terrorist] attack and Egyptair tragedy, significant disruption due to air traffic control strikes and congestion, runway closures at Gatwick airport and severe weather leading to 1,221 cancellations," it said.

Carolyn McCall, easyJet's chief executive, said those factors, "combined with industry capacity growth in short haul, continue to have an impact on industry yields at a peak time of year."

"More recently, currency volatility as a result of the UK's referendum decision to leave the EU, as well as the recent events in Turkey and Nice, continue to impact consumer confidence," McCall said in a statement.

Last update: Thu, 21/07/2016 - 12:19
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