easyJet Books Lower Profit For First Time In 7 Years
For the first time in 7 years easyJet will see its annual profit decline. Despite the airline facing some marco-economic challenges, it still holds on to its expansion plans. The carrier updated its guidance following continued terrorist attacks and threats and the Brexit-vote of which the consequences for the aviation world and UK economy are widely unknown.
easyJet profit to fall
EasyJet expects pre-tax profits to be in the range of £490m to £495, which is equivalent to a decline of 28% year-over-year.
EasyJet CEO, Carolyn McCall, said the following about the current market space and challenges:
"The current environment is tough for all airlines, but history shows that at times like this, the strongest airlines become stronger. That is why we will continue to invest for the long-term success of the business, establishing even stronger market positions, delivering excellent customer service and establishing new revenue opportunities for the future."
While all airlines are facing the threat of terrorist attacks, for easyJet the sterling pound is giving the carrier a significant headwind. The Sterling Pound has lost quite a bit of its value since the outcome of the Brexit-vote giving the airline a £90 million headwind.
Year-to-date the company has lost over a third of its market capitalization.
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