EasyJet expresses revenue concerns for Q4 2016

Budget carrier EasyJet has expressed uncertainty about its fourth quarter 2016 performance following the events in France and Turkey, which have undermined consumer confidence already shaken by the impact of the UK´s vote to exit the European Union, the company said.

The airline says the political upheaval is generating additional pressure on the carrier, which has been coping with a difficult third quarter, blighted by over 1,200 cancellations–almost 70 percent more than last year–as a result of air traffic control strikes and bad weather.

EasyJet´s third-quarter revenues dipped by 2.6 percent to just under BPS1.2 billion (USD1.58 billion), the airline has disclosed in a trading update. Revenues per seat fell by 8.3 percent at constant currency.

The airline says strong cost control enabled it to improve cost-per-seat, including the effect of fuel prices, by 3.8 percent over the quarter to 30 June. Excluding fuel, it says, the figure was largely flat, despite BPS20 million of disruption cost.

EasyJet has secured about two-thirds of expected bookings for the fourth quarter, with average revenue-per-seat for the period falling by around 7.5 percent at constant currency.