EasyJet has said that it will suffer its first fall in annual profit since 2009 caused by a year of “extraordinary events”.
The airline says its pre-tax profit for the year is likely to be around £490m, according to a trading update. This would be a drop of 28% compared to last year’s figure of £686m.
CEO Carolyn McCall said the series of events included multiple terrorist attacks, industrial action and a fall in the value of the pound.
“The current environment is tough for all airlines, but history shows that at times like this, the strongest airlines become stronger,” she said.
“That is why we will continue to invest for the long-term success of the business, establishing even stronger market positions, delivering excellent customer service and establishing new revenue opportunities for the future.”
Passenger numbers were down following terror events in Belgium and France. Air traffic control strikes resulted in flight cancellations.
The carrier also pointed out that currency fluctuations would cost £90m, mostly because sterling’s value dropped after the Brexit vote in June.
EasyJet reports in pounds, but the airline buys fuel in dollars and pays air traffic costs and landing charges on its many European routes in euros.
The company also reported that passenger numbers for the last quarter of its year were up, hitting a record of 22 million. At the same time, however, revenue per passenger was down when compared to the same time last year.
Easyjet has sold nearly half the seats available in the current first quarter, much as it had last year, but revenue for each place continues to be lower than before.
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