Easyjet plunges to £236m loss

The airline, which also blamed a late Easter for the results, recorded a loss of £21 million for the same period past year. The airline, however, added it expects a further 1% increase in cost per seat in the second half of the year. The restructuring will cost an estimated £10 million over three years and £3 million of that is expected to be booked this year.

EasyJet has ordered Airbus aircraft with a list price of US$3.8 billion, betting that a fare slide is set to reverse after pushing the United Kingdom airline to record winter losses.

A combination of currency pressures from the weaker pound and the later timing of Easter hit profitability in the six months to 31 March, with the headline loss before tax rising sharply to £212mln (H1 2016: £21mln loss).

EasyJet Plc ordered Airbus SE aircraft with a list price of $3.8 billion, betting that a fare slide is set to reverse after pushing the United Kingdom airline to record winter losses.

That compares with a loss of £21m in the same period a year ago, when Easter was in March and before the pound was hit by the Brexit vote.

The figure is a sharp increase on the £21 million loss in the same period a year ago, with the company attributing it to a later Easter and the impact of weak sterling in the wake of the Brexit vote.

And McCall confirmed that "bookings for the summer are ahead of previous year, showing that demand to fly remains strong". It has agreed to buy 30 A321 NEO aircraft under its existing agreement with Airbus, with the first arriving in summer 2018.

Adding the A321neos will boost the number of seats per flight, McCall said, improving unit costs by as much as 9 per cent versus the biggest planes easyJet now operates and maximising growth at slot-constrained hubs such as London Gatwick.

However, Easyjet CEO Carolyn McCall said the airline's performance had been "resilient" with revenue growing 3.2 per cent to £1.87 billion, while passenger numbers jumped 9 per cent to 33.8 million - revenue per seat was lower.

The airline said that it remained on track to secure a European Air Operator Certificate by the summer, to ensure it can maintain its flying rights within the EU once Britain leaves.

Shares in easyJet (LON:EZJ) have fallen deep into the red this morning, as the blue-chip carrier posted a larger loss for the first half of its financial year.

An AOC will allow the carrier to continue flying passengers on its non-UK routes once the United Kingdom has formally left the European Union.

Recommended News

  • Putin: Russia Sees No Need to Arm the Kurds in Syria

    Putin: Russia Sees No Need to Arm the Kurds in Syria

    Finally, Trump treats Erdogan like a fellow victor , someone who deserves to be at the head table with the other winners. US officials have said they are confident they can keep the YPG from taking over Raqqa, but Turkey is doubtful.
    Ukraine to block access to Russia's social media websites

    Ukraine to block access to Russia's social media websites

    The Ukrainian administration imposed sanctions on Mail.Ru Group as well. Ukraine has expended sanctions against Russian airlines. The document will remain in force for one year.
    In Beijing, Vladimir Putin Plays Two Piano Tunes From His Childhood

    In Beijing, Vladimir Putin Plays Two Piano Tunes From His Childhood

    While Putin remained modest about his performance, he won some praise on social media in China. Russian President Vladimir Putin at a news conference outside Beijing on May 15, 2017.
  • China to hold second 'Silk Road' summit in two years time

    Some Belt and Road projects are already raising concerns in certain countries. They are also concerned about transparency and access for foreign companies.

    Greek seamen and journalists go on strike

    Draconian spending cuts have seen poverty rates surge to more than 35 per cent, with the European Union average under 24 per cent. The 48-hour strike by seamen, which started on Tuesday, has left ferries servicing the country's islands tied up in port.

    Projections: Merkel's party wins vote in German state

    Chancellor Merkel's party has beaten its rival Social Democrats in their stronghold in North Rhine-Westphalia, projections showed. Voters were choosing candidates for the state legislature, which may now change from its current SPD-Greens coalition.
  • North Korea conducts most successful missile test, unnerving US

    A series of pictures published by the hermit state's media showed Jong-Un gazing at the missile in a hangar before the launch. What will the United States do? Since US President Donald Trump took power in January, rhetoric has ramped up on both sides.
    New Orleans Removes Statue of Jefferson Davis

    New Orleans Removes Statue of Jefferson Davis

    Reese denied the injunction, which would have stopped the removal of the monument until it was determined who owned the monument. The New Orleans City Council endorsed the plan in December of 2015, as member station WWNO has reported .
    English lawmaker says swearing at a Scottish schoolgirl just 'a joke'

    English lawmaker says swearing at a Scottish schoolgirl just 'a joke'

    Sturgeon position is that while the European Union is not flawless , Scotland's interests are best served by being a member. Sturgeon continued: "We have more votes, more seats and are in the driving seat of more councils than any other party".
  • Centre delaying clearance to appoint two new Delhi ministers, alleges Kejriwal

    Centre delaying clearance to appoint two new Delhi ministers, alleges Kejriwal

    The battle between expelled AAP minister Kapil Mishra and party supremo Arvind Kejriwal has been heating up for quite some time. In another message, the sacked Minister said he was not going to "utter a single word" against Sunita Kejriwal.

    What is feminism? Miss USA's answer raises questions

    She was born in Naples, Italy but she grew up in Virginia Beach, Virginia. McCullough said she prefers the term " equalism ".
    Max Verstappen not expecting a repeat of historic Spanish Grand Prix win

    Max Verstappen not expecting a repeat of historic Spanish Grand Prix win

    Red Bull are also waiting on an updated power unit from Renault, which has been delayed following reliability concerns. If you look at the last sector, I was third quickest of all the drivers so that shows we are on a good way".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.