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Airline 'resilient' says CEO

EasyJet profits hit by sterling, terror and strikes

Carolyn McCallSterling’s weakness, terror attacks and industrial action took their toll on Easyjet’s profits which have fallen by more than a quarter in the past year.

In the 12 months to 30 September pre-tax profits fell 27.9% to £495m on a 0.4% decline in revenue to £4.67 billion.

Passenger numbers rose 6.6% to 73.1 million, partly offsetting the trading environment and the company’s cut in fares.

Terror attacks in Egypt and Tunisia, air traffic control strikes in France and the uprising in Turkey all contributed to passengers choosing not to travel to these destinations.

Sterling’s sharp depreciation since the Brexit referendum also affected earnings, as did disruption during the year – strikes, severe weather, airport issues – which resulted in 8,349 flights (2015: 6,789) being either cancelled, delayed over three hours, or diverted.

Chief executive, Carolyn McCall, said: “EasyJet achieved a resilient performance in 2016, in the face of significant challenges including a series of external events and foreign exchange headwinds.”

The company has declared an interim dividend of 53.8p per share (2015: 55.2p), in line with its increased payout policy of 50% of profit after tax.

 

 

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