Budget airline EasyJet (LON:EZJ) saw shares plunge this morning after issuing their first profit warning since 2009.
EasyJet now expect full-year profits to be between £490 million and £495 million, citing various terrorist incidents, industrial action and the continued de-valuation of the pound as reasons for the unexpectedly poor figures.
EasyJet are expected to lose at least £125 million after the “extraordinary events” of this year, with profits down 28 percent from last years’ £686 million. The falling value of the pound alone cost the company around £90 million, as sterling continues to feel the aftershocks of the June referendum result.
“The current environment is tough for all airlines, but history shows that at times like this, the strongest airlines become stronger.”
“That is why we will continue to invest for the long-term success of the business, establishing even stronger market positions, delivering excellent customer service and establishing new revenue opportunities for the future.”
“EasyJet continues to attract record numbers of passengers due to its wide range of destinations, convenient flight times and value for money fares,” she continued.
“We have been disproportionately affected by extraordinary events this year, but our excellent network, cost control and revenue initiatives, and our strong balance sheet underpin our confidence in the business.”
EasyJet hosted a record 22 million passengers between July and September this year, with the cost-per-seat moving downwards. As a consequence, EasyJet expects seat revenue to decline by around 8.7 percent for the remainder of the year and similarly expects ticket prices to continue to decrease in the next few months.
Following the announcement, EasyJet shares plunged by around seven percent to 930p, marking the biggest fall in the FTSE 100 this year.