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You can find the current article at its original source at https://www.theguardian.com/business/2016/jul/21/easyjet-counts-cost-of-nervous-passengers-weak-pound-and-strikes
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| EasyJet counts cost of nervous passengers, weak pound and strikes | EasyJet counts cost of nervous passengers, weak pound and strikes |
| (about 1 month later) | |
| EasyJet has said it is facing one of the most difficult periods in memory as multiple terrorist attacks, industrial action and uncertainty following the Brexit vote blight the airline sector. | EasyJet has said it is facing one of the most difficult periods in memory as multiple terrorist attacks, industrial action and uncertainty following the Brexit vote blight the airline sector. |
| The budget airline said weak consumer confidence and an unusually high level of disruption to flights was making it difficult to predict how the business would fare in the coming months. | The budget airline said weak consumer confidence and an unusually high level of disruption to flights was making it difficult to predict how the business would fare in the coming months. |
| EasyJet was the biggest faller on the FTSE 100 on morning trading, down 6% at one point. | EasyJet was the biggest faller on the FTSE 100 on morning trading, down 6% at one point. |
| Carolyn McCall, the chief executive, said events affecting the industry were developing on a daily basis, citing Turkey’s decision on Wednesday to declare a state of emergency, following a failed coup attempt. | Carolyn McCall, the chief executive, said events affecting the industry were developing on a daily basis, citing Turkey’s decision on Wednesday to declare a state of emergency, following a failed coup attempt. |
| “There are so many moving parts. There are more terrorist events than in any years anyone can remember, air traffic control action, and the devaluation of the pound on top of that. All of that has an impact on consumer confidence. It is one of the most difficult environments we have seen in a very long time.” | “There are so many moving parts. There are more terrorist events than in any years anyone can remember, air traffic control action, and the devaluation of the pound on top of that. All of that has an impact on consumer confidence. It is one of the most difficult environments we have seen in a very long time.” |
| McCall said consumers’ willingness to fly tended to diminish rapidly in the immediate aftermath of terrorist events such as the attack in Nice last week. “You see demand fall immediately. It does recover but it can take weeks,” she said. | McCall said consumers’ willingness to fly tended to diminish rapidly in the immediate aftermath of terrorist events such as the attack in Nice last week. “You see demand fall immediately. It does recover but it can take weeks,” she said. |
| The sharp fall in the pound since the Brexit vote has pushed costs up by £40m, according to McCall, largely because fuel is priced in the stronger US dollar. | The sharp fall in the pound since the Brexit vote has pushed costs up by £40m, according to McCall, largely because fuel is priced in the stronger US dollar. |
| She made the comments as easyJet published a trading update for the third quarter. The airline said cancellations have been much higher than usual because of a combination of strike action, poor weather, runway closures at Gatwick and air traffic congestion. A total of 1,221 flights were cancelled over the period, a 70% increase on the same period a year earlier. | She made the comments as easyJet published a trading update for the third quarter. The airline said cancellations have been much higher than usual because of a combination of strike action, poor weather, runway closures at Gatwick and air traffic congestion. A total of 1,221 flights were cancelled over the period, a 70% increase on the same period a year earlier. |
| Revenue over the quarter fell by 2.6% to £1.2bn, partly because of the high number of cancellations and increased competition on short haul routes. Revenue per seat fell by 7.7% to £54.54. The number of passengers carried on easyJet flights increased by 5.8% to 20.2 million. | Revenue over the quarter fell by 2.6% to £1.2bn, partly because of the high number of cancellations and increased competition on short haul routes. Revenue per seat fell by 7.7% to £54.54. The number of passengers carried on easyJet flights increased by 5.8% to 20.2 million. |
| McCall said the outlook remained uncertain: “The economic and operating environment remains uncertain, following the high levels of disruption and more recently the UK’s referendum decision to leave the EU, as well as the recent events in Turkey and Nice, which have affected consumer confidence. | McCall said the outlook remained uncertain: “The economic and operating environment remains uncertain, following the high levels of disruption and more recently the UK’s referendum decision to leave the EU, as well as the recent events in Turkey and Nice, which have affected consumer confidence. |
| “This combined with industry capacity growth in short haul continues to have an impact on industry yields at a peak time of year.” | “This combined with industry capacity growth in short haul continues to have an impact on industry yields at a peak time of year.” |
| EasyJet said it had a team in place to hold talks with regulators and governments to secure European flying rights following Britain’s decision to leave the EU. | EasyJet said it had a team in place to hold talks with regulators and governments to secure European flying rights following Britain’s decision to leave the EU. |
| The airline added it had “a well-developed” contingency plan to obtain an EU airline operator certificate. McCall stressed this would only be pursued “out of necessity, not choice”, should the UK government fail to secure an agreement that ensured the continuation of a liberalised and deregulated aviation market. | The airline added it had “a well-developed” contingency plan to obtain an EU airline operator certificate. McCall stressed this would only be pursued “out of necessity, not choice”, should the UK government fail to secure an agreement that ensured the continuation of a liberalised and deregulated aviation market. |
| “EasyJet remains committed to the UK, its largest single market,” the company said. The airline has secured 65% of expected bookings for the fourth quarter, with average revenue per seat for the quarter down by around 7.5%. | “EasyJet remains committed to the UK, its largest single market,” the company said. The airline has secured 65% of expected bookings for the fourth quarter, with average revenue per seat for the quarter down by around 7.5%. |
| “As a result of events in the last week the revenue per seat trajectory in the fourth quarter remains uncertain,” it cautioned. | “As a result of events in the last week the revenue per seat trajectory in the fourth quarter remains uncertain,” it cautioned. |
| The German airline Lufthansa cut its full-year profit target on Wednesday, saying advanced bookings on long-haul routes to Europe had fallen sharply “due to repeated terrorist attacks in Europe and to greater political and economic uncertainty”. | The German airline Lufthansa cut its full-year profit target on Wednesday, saying advanced bookings on long-haul routes to Europe had fallen sharply “due to repeated terrorist attacks in Europe and to greater political and economic uncertainty”. |
| The company said it expected full-year underlying earnings to fall in 2016, having previously expected them to come in just above the previous year. | The company said it expected full-year underlying earnings to fall in 2016, having previously expected them to come in just above the previous year. |