easyJet has reported a fall in revenue for the three months to June 30th, with “difficult and uncertain economic and operating environment” affecting exchange rates and hitting profitability.
Per seat revenue was down 8.3% to £54.54 per seat with total revenue dropping by 2.6% to £1,196 million for the quarter.
easyJet also has been affected by the terror attacks in Brussels as the loss of an EgyptAir aircraft in the Mediterranean en route from Paris to Cairo.
Then there were the air traffic control strikes in France, runway closures at Gatwick airport and bad weather which saw 1,221 flights cancelled.
The post-Brexit drop in sterling has cost the airline £40 million in four weeks as un-hedged fuel costs soared.
Carolyn McCall, easyJet’s chief executive, commented, “The economic and operating environment has been difficult in the third quarter due to a number of factors including air traffic control strikes and other industrial action, runway closures at London Gatwick and severe weather.
“These factors combined with industry capacity growth in short haul continue to have an impact on industry yields at a peak time of year.
“More recently currency volatility as a result of the UK’s referendum decision to leave the EU as well as the recent events in Turkey and Nice continue to impact consumer confidence.
“Despite this, easyJet carried more passengers and achieved higher load factors during the third quarter as easyJet’s brand continued to resonate strongly across Europe.
“easyJet is strongly controlling costs and driving continued improvement in operational and customer delivery.
“We are focussed on the opportunities that are inevitable from a tougher environment.
“The easyJet business model remains robust, with a strong cash position, solid balance sheet and a flexible fleet plan.”
