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| Easyjet warns of £90m currency hit | Easyjet warns of £90m currency hit |
| (35 minutes later) | |
| Easyjet has warned that the weakened pound will cost it £90m in its current financial year. | Easyjet has warned that the weakened pound will cost it £90m in its current financial year. |
| That is more than double its original estimate made in July, when it warned of a £40m hit. | |
| Jet fuel is priced in dollars, so the falling pound has made it more expensive for Easyjet to run its aircraft. | Jet fuel is priced in dollars, so the falling pound has made it more expensive for Easyjet to run its aircraft. |
| Easyjet expects a profit of between $490m and £495m for its financial year, which ends on 30 September. | Easyjet expects a profit of between $490m and £495m for its financial year, which ends on 30 September. |
| That would be down 28% on the £686m annual profit it made in 2015. | That would be down 28% on the £686m annual profit it made in 2015. |
| "The current environment is tough for all airlines, but history shows that at times like this, the strongest airlines become stronger," said Carolyn McCall, Easyjet chief executive. | |
| Easyjet flew a record 22 million passengers in the three months to 30 September, and those passengers have been enjoying lower ticket prices. | |
| Easyjet expects revenue per seat to be down 8.7% for the year and expects ticket prices to fall further in the coming months. | |
| 'Aggressive' discounts | |
| "Average fares are coming down, which is good for customers. To a certain extent, there is a price war going on," said Robin Byde, airline analyst at Cantor. | |
| "Passenger growth is very strong, cabins are very full. To do that, they've had to discount quite aggressively," he added. | |
| Terror attacks in Europe, Turkey and Tunisia have also affected sales. | |
| "We have been disproportionately affected by extraordinary events," said Ms McCall. |