EasyJet has increased passenger numbers despite a “difficult and uncertain” operating environment but has warned about the impact of Brexit.
The low-cost carrier saw a 5.8% rise in passengers to 20.2 million during the three months to June 30, in spite of “significant disruption” caused by the Brussels attack, the crash of an EgyptAir flight and a succession of European air traffic control strikes.
As a result, easyJet calculated the disruptions had caused 1,221 cancellations to services leading to disruption costs of £20 million during the three months up to June 30.
But total revenue per seat fell by 7.7% to £54.54, while the airline’s revenue in the quarter dropped by 2.6% to £1.2 billion.
EasyJet’s shares fell by as much as 7% to £10.41 in early trading on the London Stock Exchange following the announcement.
Chief executive Carolyn McCall told the BBC that the impact of the Brexit vote had so far cost the airline around £40 million due to the slump in the value of the pound against the dollar. Aviation fuel is paid for in US dollars.
EasyJet said exchange rate movements were likely to cost the company around £45 million for the six months up to September 30, compared to the same period in 2015, and cost around £80 million for the entire financial year.
McCall said in the company statement that further volatility caused by the UK’s decision to leave the EU coupled with recent events in Nice and Turkey continuing to “impact consumer confidence”.
She added: “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 focused 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. The easyJet team is confident in its ability to navigate the period ahead and drive long term advantage.”