Easyjet: profit falls after Brexit

EasyJet is enduring a very challenging period.  The low cost company flew a record 22 million passengers in the three months to Sept. 30, but revenue per seat fell by 8.7% from the same period last year, at constant currency as EasyJet has invested in pricing in order to boost passenger numbers. This included a strong load factor of 93.9%, with passengers benefitting from low fares across its network. 

But, for the first time since 2009, the Luton-based carrier said annual profits will fall by 28%. For the year ending September 30 it said pretax profit was between £490 million and £495 mln ($623 million-$630 million), lower than the £516 million figure anticipated by analysts.

The bill for Brexit is coming soon.

The reason behind reduced fares is a challenging operating environment. There has been major disruption, lower fuel costs encouraging greater competition from rivals and continued fear regarding terrorism. These factors have contributed to a difficult operating environment for all European airlines.

EasyJet CEO Carolyn McCall said on Thursday: “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.”

Regarding new business plan, the airlines is preparing to obtain another EU operating license and other adjustments to help assure traffic rights to the EU after Brexit. 

And she addded:"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." 

The carrier will publish its annual results on November 15 for the group’s fiscal year, which runs to September 30. EasyJet shares fell more than 5% in London trading.