McCall departs, EasyJet flies

EASYJET profits nosedived yesterday as the budget airline prepared to bid farewell to chief executive Dame Carolyn McCall.

Earnings fell 17pc to £408m as the carrier was hurt by poor exchange rates and higher running costs.

However revenue was up 8pc to £5bn, boosted by turbulence among rival firms and the addition of 6.8m extra seats and 59 more routes over the year.

With the collapse of Monarch and troubles at Alitalia and Air Berlin, McCall – who is heading to ITV – said that the trading environment for airlines has been ‘pretty brutal’.

‘EasyJet delivered a robust performance during a difficult year for the aviation industry,’ she said. ‘Our model is resilient and sustainable and we now have a huge amount of positive momentum which will enable the airline to continue to grow profitably.’

McCall leaves at the end of the month and will be replaced by Tui director Johan Lundgren.

Despite disappointing profits, shares in EasyJet were flying high and closed up 5pc, or 65p, at 1343p, which market commentators said was down to ‘signs of a break in the clouds’.

‘Forward reservations are up on last year, and the trend for rising costs and lower prices is set to reverse in the coming months,’ said George Salmon, equity analyst at investment service Hargreaves Lansdown.

‘With low fuel prices locked in, investors will be hoping the new boss is joining at an inflection point,’ he added.