easyJet warns falling pound, security fears to hit profit

Budget airline easyJet warned on Thursday that annual profit is likely to suffer a 90-million-pound hit from the plunging British pound and further impact from a fall in passenger numbers caused by security fears.

easyJet said it had "performed strongly in a difficult operating environment for all European airlines" over the last three months but had been hit by exchange rate fluctuations and "the impact on demand from terrorist events."

It expects to record a profit of 490 million pounds to 495 million pounds (624 million dollars to 629 million dollars) for the financial year that ended on September 30, down about 25 per cent from the previous year, the company said in a statement.

It said the shifts in currency exchange rates are expected to cost it about 90 million pounds this year, including about 35 million pounds incurred since June 23, when the pound began to slide after Britain's vote to leave the European Union.

"We have been disproportionately affected by extraordinary events this year but our excellent network, cost control and revenue initiatives and our strong balance sheet underpin our confidence in the business," said Carolyn McCall, easyJet's chief executive.

"The current environment is tough for all airlines, but history shows that at times like this the strongest airlines become stronger," McCall said.

Last update: Thu, 06/10/2016 - 14:11
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