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You can find the current article at its original source at https://www.theguardian.com/business/2016/oct/06/easyjet-set-for-annual-profit-fall-year-extraordinary-events
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| EasyJet set for drop in annual profit after year of 'extraordinary events' | EasyJet set for drop in annual profit after year of 'extraordinary events' |
| (35 minutes later) | |
| EasyJet is set for its first drop in annual profit since 2009 after a year blighted by multiple terrorist attacks, industrial action and a sharp fall in the value of the pound. | EasyJet is set for its first drop in annual profit since 2009 after a year blighted by multiple terrorist attacks, industrial action and a sharp fall in the value of the pound. |
| In a trading update, the budget airline said it expected pre-tax profit to be in the range of £490m to £495m for the 12 months to 30 September, compared with £686m the previous year, a decline of about 28%. | In a trading update, the budget airline said it expected pre-tax profit to be in the range of £490m to £495m for the 12 months to 30 September, compared with £686m the previous year, a decline of about 28%. |
| Shares in the company dropped by 7% to 930p, making easyJet the biggest faller on the FTSE 100. | Shares in the company dropped by 7% to 930p, making easyJet the biggest faller on the FTSE 100. |
| Carolyn McCall, the easyJet chief executive, said the company had faced a series of extraordinary events this year, but she remained confident in the business. | Carolyn McCall, the easyJet chief executive, said the company had faced a series of extraordinary events this year, but she remained confident in the business. |
| “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. |
| “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.” | “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.” |
| People were less willing to fly in the immediate aftermath of attacks in Belgium and France, and air traffic control strikes led to disruption and cancelled flights. | People were less willing to fly in the immediate aftermath of attacks in Belgium and France, and air traffic control strikes led to disruption and cancelled flights. |
| EasyJet said currency movements would cost the company £90m in the full year, largely because of the plunging value of sterling since the Brexit vote on 23 June. | EasyJet said currency movements would cost the company £90m in the full year, largely because of the plunging value of sterling since the Brexit vote on 23 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. | 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. |
| In the trading update before its full-year results, easyJet said passenger numbers for the final quarter of its financial year were a record 22 million. Revenue per seat decreased by 8.7% over the three months, compared with the same period a year earlier. | |
| Cost per seat, including fuel, is expected to fall by 4.6%. | Cost per seat, including fuel, is expected to fall by 4.6%. |
| 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.” | |
| The airline said it was pushing ahead with its strategy of building leading positions at important airports in key summer beach and European city destinations. | The airline said it was pushing ahead with its strategy of building leading positions at important airports in key summer beach and European city destinations. |
| EasyJet has sold about 45% of seats available in the current first quarter, in line with the previous year. Revenue per seat continues to decline at about the same rate as in the fourth quarter. |