EasyJet profit hit by slump­ing pound

The Myanmar Times - - Business -

BRI­TISH low-cost air­line EasyJet said yes­ter­day its an­nual profit be­fore tax slumped by al­most one-third due to a Brexit-driven tum­ble in the pound, ter­ror at­tacks and strikes.

Pre-tax profit fell 28 per­cent to £495 mil­lion (US$618 mil­lion) in the year to Septem­ber 30 com­pared with 2014-15 “mainly due to the de­cline in rev­enue and for­eign ex­change im­pact”, EasyJet said in an earn­ings state­ment.

It added that cur­rency fluc­tu­a­tions would cost it around £90 mil­lion dur­ing its cur­rent fi­nan­cial year.

EasyJet has been hit over the past year also by in­dus­trial ac­tion and un­rest in key mar­kets Egypt and Turkey.

The lat­est fi­nan­cial re­sult had been ex­pected by mar­kets af­ter EasyJet posted a profit warn­ing in Oc­to­ber. The pound has tum­bled fol­low­ing Brexit, strik­ing 31-year dol­lar lows and 7.5-year troughs against the euro.

The col­laps­ing value of the pound weighs on EasyJet’s per­for­mance be­cause it makes dol­lar-priced jet fuel more ex­pen­sive, ramp­ing up the cost of run­ning air­craft.

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