Easyjet posts £24m loss as terror attacks deter passengers

Paris attacks and Egypt airliner crash dent airline's profits

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EasyJet CEO Says External Events are Impacting Business




Low-cost carrier Easyjet has swung to a half-year loss after recent terror attacks saw some passengers stay away and rivals stepped up the pace of competition.

The airline posted losses of £24 million for the six months to the end of March against profits of £7 million a year earlier, but said its bottom line was hit by a £33 million foreign exchange rate impact.

It said sales suffered in the wake of November's deadly attacks in Paris, which knocked 2.7% off revenues per seat in the first half, while the suspension of flights on routes to the popular Egyptian tourist destination of Sharm el-Sheikh following the Russian airliner crash reduced revenues by another 1.3%, it said.

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Half-year revenues per seat were left 6.6% lower overall at £51.29 and easyJet warned that trading would remain tough in its third quarter as demand continues to be impacted by the terrorist bombing at Brussels airport in March, which killed 16 people.

It said the decline in revenues per seat would worsen, to a fall of around 7%, with the early timing of Easter also taking its toll in the third quarter.

The group is likewise battling against increased competition from rivals such as Ryanair, with the sharp falls in the price of oil seeing a surge in low-cost travel as fares fall across the board.

But the group said it was a robust performance against difficult conditions, with consumers remaining "resilient".

"Demand for air travel continues to grow, despite recent disruptive events," it said.

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