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EasyJet Q3 Revenues Down; Says Operating Environment Remains Uncertain
The low-priced carrier said “events in the last week” left it uncertain about how it would perform in the current period.
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Shares in the Luton-based airline fell 57p, or 5.1%, to 1070p as it said passenger numbers in the third quarter to the end of June rose 5.8% to 20.2 million.
easyJet announced in a statement this morning that its total revenue per seat had dropped by 8.3 percent at constant currency to £54.54 per seat, while total revenue for the quarter had fallen by 2.6 percent to £1.2 billion.
The performance was hit by the Brussels attack and Egyptair crash as well as air traffic control strikes, runway closures at Gatwick and severe weather, leading to 1,221 cancellations and disruption costs of £20m for the period.
DAILY MAIL AND GENERAL TRUST: The owner of Britain’s Daily Mail newspaper, which urged Britons to vote out at the European Union referendum, said on Thursday that the Brexit result had sparked uncertainty in advertising and property markets.
It also has a plan to obtain an EU Airline Operator Certificate if the United Kingdom government negotiation does not achieve the desired outcome of a continuation of a liberalised and deregulated aviation market.
The carrier said it had sold about 65% of seats available in its final quarter to the end of September, with per-seat revenue falling 7.5% at a constant currency basis. Capacity is expected to grow in the fourth quarter by 6 percent.
easyJet’s third quarter was impacted by a high number of cancelled flights due to strike action, runway closures and severe weather, plus the beginning of the impact of Brexit, since when the pound has slumped 9 percent against the euro.
The low-priced carrier’s share price is down about 40 per cent since the start of the year.
Looking ahead, the company said the economic and operating environment remains uncertain, following the high levels of disruption and more recently the UK’s referendum decision to leave the European Union, as well as the recent events in Turkey and Nice, which have affected consumer confidence.
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Deutsche Lufthansa, Europe’s third-biggest mainline carrier, cited terrorist attacks in Europe as the main reason for a cut in its full-year forecast, as it no longer say a significant decline in advance, long-haul bookings recovering anytime soon. “EasyJet is strongly controlling costs and driving continued improvement”.