Easyjet plunges to £236m loss

Carolyn McCall the CEO easyJet attends an'Inspiring Women speed networking event for 100 girls from state secondary schools in Lancaster House

Carolyn McCall the CEO easyJet attends an'Inspiring Women speed networking event for 100 girls from state secondary schools in Lancaster House

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

  • China to hold second 'Silk Road' summit in two years time

    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.

    Lewis Hamilton hails his 'rawest fight' ever after winning Spanish Grand Prix

    Sergio Perez finished fourth, while Esteban Ocon went fifth. "I could feel what the auto had there, but I just couldn't get to it".
    7 people killed in fire at Ohio home

    7 people killed in fire at Ohio home

    I helped him build that house over there before it burned down, put my blood, sweat and tears into it", he said. Five children and two adults died in an Akron house fire early Monday morning, fire officials said.
  • 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.

    Warner: Trump firing Comey has 'appearance' of quashing FBI's Russian Federation probe

    There are six known candidates who interviewed for the position on Saturday at Justice Department headquarters. Asked whether it was the right time to have someone such as Rogers or Cornyn, Graham flatly said, "no".
    Syria safe zones closed to US-coalition jets: Russian Federation

    Syria safe zones closed to US-coalition jets: Russian Federation

    Instead, Turkish troops and allied Syrian factions have been fighting IS militants and a Syrian Kurdish group in the north. UN Secretary General Antonio Guterres "is encouraged by the agreement", UN spokesman Stephanie Dujarric reported .
  • 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 ".

    He simply stated a fact': Spicer plays down Trump 'tapes' warning

    He said because Trump is an "activist" president, the press office staff does not always get into see him before the briefing. Earlier, President Trump has tweeted an apparent threat to James Comey, the former FBI Director he fired earlier this week .
    World's biggest cyberattack hits 150 countries, the threat is 'escalating'

    World's biggest cyberattack hits 150 countries, the threat is 'escalating'

    The warning was issued after Britain announced 97 per cent of the country's health service trusts were "working as normal". It's not uncommon for them to use aliases, either to protect themselves from retaliatory attacks or for privacy.
  • 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.

    It's far from case closed on Trump, Russia

    But the blowback from Comey's firing left the White House reeling once again. "That's, frankly, offensive", Mr Spicer said. CNN said Comey is "not anxious about any tapes" Trump may have, citing an unnamed source familiar with the matter.
    Maine Secretary of State Tapped for Trump's Voter Fraud Commission

    Maine Secretary of State Tapped for Trump's Voter Fraud Commission

    The president has repeatedly claimed, without evidence, that millions of people voted illegally in the 2016 presidential election. The official says the panel will include Republicans and Democrats and include current and former state election officials.

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.