Easyjet investors unimpressed as carrier posts £212m pre-tax loss for half year

Despite earlier warnings, easyJet, the low-cost carrier, has posted a pre-tax loss of £212 million for the six months up to the end of March. The loss has been attributed to the weaker pound and a late Easter.
EasyJet pays for its fuel in US dollars, which increases the price when the pound is weak – as it has been since the UK’s Brexit vote. Approximately £82 million of the company’s losses have been attributed to the weaker pound. A further £45 million loss has been attributed to Easter coming in mid-April.
According to easyJet’s chief executive, Carolyn McCall, the airline delivered a “resilient performance” in line with market expectations and “reflects the movement of Easter into the second half as well as currency effects which together had an estimated impact of circa £127m on the bottom line”.
Total revenue grew 3.2 per cent and the airline flew a record 33.8 million passengers in the six months, a 9 per cent increase from the same period last year.
McCall added: “Our bookings for the summer are ahead of last year showing that demand to fly remains strong and reflects growing evidence that consumers are prioritising expenditure on flights and holidays above other non-essential items.
“Looking ahead, we are seeing improving revenue per seat trend as well as the continued reduction of competitor capacity growth. Cost performance for the full year will continue to be strong.”
Investors were not so happy with the results for the first six months of the financial year and the share price fell 7% after the announcement was made.
(£1.00 = US$1.29 at time of publication)