EasyJet posts terror losses

Sales fell after the attack in Paris and will be hit by Brussels, the firm said
Sales fell after the attack in Paris and will be hit by Brussels, the firm said
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Budget airline easyJet has swung to a half-year loss after recent terror attacks saw some passengers stay away and rivals stepped up the pace of competition.

The no-frills airline posted losses of £24 million for the six months to the end of March against profits of £7m a year earlier, but said its bottom line was also hit by a £33m foreign exchange rate impact.

It said sales suffered in the wake of November’s deadly attacks in Paris, which knocked 2.7% off revenues per seat in the first half, while the suspension of flights on routes to the popular Egyptian tourist destination of Sharm el-Sheikh following the Russian airliner crash reduced revenues by another 1.3%, it said.

Half-year revenues per seat were left 6.6% lower overall at £51.29 and easyJet warned that trading would remain tough in its third quarter as demand continues to be impacted by the terrorist bombing at Brussels airport in March, which killed 16 people.

It said the decline in revenues per seat was expected to worsen, to a fall of around 7%, with the early timing of Easter also taking its toll in the third quarter.

The group is likewise battling against increased competition from rivals such as Ryanair, with the sharp falls in the price of oil seeing a surge in low-cost travel as fares fall across the board.