This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.independent.co.uk/news/business/news/easyjet-pound-sterling-value-dollar-brexit-latest-a7347476.html
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Pound sterling slide hits EasyJet profits | Pound sterling slide hits EasyJet profits |
(about 4 hours later) | |
EasyJet has warned the cost of Brexit has already hit £90m thanks to the sliding value of the pound after the July referendum. | |
This is more than double EasyJet’s original estimate made in July, when the company warned of a £40m currency hit. | |
EasyJet pays for fuel in dollars, which makes it more expensive when the pound is weaker. | EasyJet pays for fuel in dollars, which makes it more expensive when the pound is weaker. |
The weaker pound has also affected consumer confidence in the immediate aftermath of the Brexit vote, making holidaymakers less keen to go abroad. | The weaker pound has also affected consumer confidence in the immediate aftermath of the Brexit vote, making holidaymakers less keen to go abroad. |
Pre-tax profits for the year ending on 30 September is expected to be in the range of £490m to £495m, EasyJet said in a trading update Thursday. | |
This would be 28 per cent lower than the £686m pounds generated in 2015. | |
It’s also well below analysts’ expectations. They predicted profit before tax would be between £497m and £517m. | |
The company’s share price fell 6.78 per cent at the open. | |
Carolyn McCall, EasyJet chief executive, said the airline was facing “one of the most difficult period in years”. | |
“The current environment is tough for all airlines, but history shows that at times like this the strongest airlines become stronger,” she said. | “The current environment is tough for all airlines, but history shows that at times like this the strongest airlines become stronger,” she said. |
Airlines are facing a slew of pressures, from terror attacks in Sharm el-Sheikh, Paris and Brussels, as well as more recent events in Nice and Turkey, which put people off travelling abroad. | Airlines are facing a slew of pressures, from terror attacks in Sharm el-Sheikh, Paris and Brussels, as well as more recent events in Nice and Turkey, which put people off travelling abroad. |
Currency and consumer issues affecting Brexit add to this stress. | Currency and consumer issues affecting Brexit add to this stress. |
Still, EasyJet said it had achieved a “record” three months of trading in its final quarter. | Still, EasyJet said it had achieved a “record” three months of trading in its final quarter. |
The company flew a record 22 million passengers in the three months to 30 September. | The company flew a record 22 million passengers in the three months to 30 September. |
Carolyn McCall said: “EasyJet continues to attract record numbers of passengers due to its wide range of destinations, convenient flight times and value for money fares. | Carolyn McCall said: “EasyJet continues to attract record numbers of passengers due to its wide range of destinations, convenient flight times and value for money fares. |
“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." | “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." |
Previous version
1
Next version