Belfast Telegraph

EasyJet set for £105m hit due to Brexit turbulence

By Holly Williams

Low-cost airline easyJet has revealed a £35m hit after taking a hammering from the weak pound and Brexit-related issues.

The budget carrier, which also suffered because of the Berlin Christmas market attack, said currency fluctuations were expected to cost £105m over the current financial year.

That is up from the £90m previously estimated in November, with fuel costs additionally falling by less than expected.

Easyjet is also forking out £10m for an air operation certificate as it sets up a new operating company in mainland Europe and applies for a new licence to secure flying rights for 30% of its routes after Brexit.

The airline said revenues per seat fell 8.2% as it continued to slash prices in the face of competition from the likes of rival Ryanair, but the group added that this marked an improvement.

Shares tumbled by 9% after the update.

Easyjet, led by chief executive Carolyn McCall, added that on top of the extra £35m fuel and currency bill, it saw a financial impact in the "low millions" from the truck attack in Berlin, which killed 12 people, as bookings to the city dropped in the immediate aftermath.

The budget carrier, which is cutting costs to weather difficult trading caused by the weak pound and competition, flies to around 25 destinations from Belfast International Airport.

Belfast Telegraph

Popular

From Belfast Telegraph