easyjet expects bigger earnings hit from weak pound
Last Updated : GMT 12:45:25
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 12:45:25
Emiratesvoice, emirates voice

EasyJet expects bigger earnings hit from weak pound

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice EasyJet expects bigger earnings hit from weak pound

British low-cost carrier EasyJet
London - AFP

EasyJet expects full-year profits to suffer a bigger-than-expected hit with the pound down sharply since the Britain voted to exit the European Union, the no-frills airline said Tuesday.

"The weakness of sterling is expected to impact EasyJet's year-on-year profit before tax for financial year 2017 by around £105 million ($131 million, 122 million euros)," the company said in a statement, up from an estimate of about £90 million in November.

Since Britain voted in June for Brexit, the pound's value has slumped by around 18 percent against the dollar and some 14 percent versus the euro.

EasyJet's share price slumped in reaction to Tuesday's update, sliding 8.36 percent to £9.86 on London's FTSE. The benchmark index was flat overall.

"After a bruising 2016, EasyJet investors have understandably latched on to the continuing drag on profitability from Brexit-hit sterling," said City Index market analyst Ken Odeluga.

"The impact is forecast to amount to £75 million in the first half and £105 million for the whole financial year. These hits are higher than the approximately £70 million and £90 million figures the airline foresaw when reporting full-year results in November."

EasyJet chief executive Carolyn McCall added that a hit from the current fuel price environment would also be larger than expected on group earnings for the year to September 30.

- Fiercer competition -

Although lower oil prices reduce airlines' jet fuel costs, it leads also to increased competition among airlines as the savings trigger cheaper ticket fares.

"The dogfight in European shorthaul continues, and sheer weight of numbers is taking its toll on EasyJet," said Nicholas Hyett, equity analyst at Hargreaves Lansdown stockbrokers.

"Prices per seat are falling as competitors add capacity, made possible by lower fuel prices. EasyJet is keeping pace and that is helping topline revenue move upwards, with capacity and passenger numbers continuing to surge," he added.

Tuesday's update came in a first-quarter trading statement in which EasyJet announced rises to revenue thanks to higher passenger numbers.

"EasyJet has delivered a solid first quarter with revenue, cost and passenger numbers in line with expectations," said McCall.

EasyJet earlier this month said it had transported a record 74.5 million passengers last year thanks to low oil prices and full planes, but nevertheless found itself slipping further behind no-frills leader Ryanair.

And EasyJet's heavy exposure to the uncertain British economy and weak pound have seen investors shun for a while the airline's shares, which slumped 42 percent last year, a drop much worse than its rivals.

EasyJet has been hit also by industrial action and unrest in key markets Egypt and Turkey.

Meanwhile following Britain's vote to quit the EU, EasyJet is looking into obtaining EU operating certification to ensure a smooth transition once the country does leave the bloc.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

easyjet expects bigger earnings hit from weak pound easyjet expects bigger earnings hit from weak pound

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

easyjet expects bigger earnings hit from weak pound easyjet expects bigger earnings hit from weak pound

 



Emiratesvoice, emirates voice Skincare PR Performance Full Year 2017

GMT 08:36 2018 Monday ,22 January

Skincare PR Performance Full Year 2017
Emiratesvoice, emirates voice New hunt for flight MH370 gets under way

GMT 10:28 2018 Wednesday ,24 January

New hunt for flight MH370 gets under way
Emiratesvoice, emirates voice Modern colorful bedroom renovation

GMT 12:12 2017 Thursday ,21 December

Modern colorful bedroom renovation
Emiratesvoice, emirates voice Five Saudi women pilots granted GACA licences

GMT 15:04 2018 Thursday ,30 August

Five Saudi women pilots granted GACA licences
Emiratesvoice, emirates voice Turkey detains dozens more

GMT 10:11 2018 Wednesday ,24 January

Turkey detains dozens more

GMT 16:17 2018 Thursday ,30 August

Five Saudi women pilots granted GACA licences

GMT 10:51 2018 Tuesday ,23 January

Saudi university to open driving school for women

GMT 03:52 2017 Saturday ,21 October

Click a selfie, get a credit card

GMT 21:46 2018 Monday ,08 January

Bahrain, Tunisia discuss youth, sport cooperation

GMT 10:33 2012 Wednesday ,18 January

Germany, France urge EU

GMT 05:48 2017 Saturday ,30 December

Iraq faces 'new war' - on corruption

GMT 20:07 2011 Tuesday ,01 November

Chimps understand language too

GMT 06:42 2017 Tuesday ,19 December

65 journalists and media workers killed in 2017

GMT 15:01 2011 Wednesday ,14 September

Trial Adjourned for a week

GMT 08:53 2017 Friday ,28 July

Nawal Ghasham resumes her artistic works

GMT 06:57 2017 Wednesday ,13 December

Egyptian MP praises Putin’s visit to Egypt

GMT 23:23 2017 Wednesday ,25 January

UN mission condemns attack in Somali's Mogadishu

GMT 13:27 2017 Wednesday ,13 September

Iraqi forces managed to kill ISIS investigation officer
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice