easyJet reported a lower net profit of GBP427m for the year to end September, a 22% drop. Profit before tax dropped to GBP495m from GBP686m in the previous financial year. The drop was mainly due to a decline in revenue and foreign exchange impact, the low cost airline said. Revenue in the 12 months was down 0.4% at GBP4.67b. easyJet said the revenue decline was due to aggressive pricing, reduced consumer confidence because of terrorism, and the effects of higher UK costs because of the drop in sterling after the EU vote. The impact of these events caused a hit to profit of about GBP150m. Capacity (in available seat terms) grew by 6.5%, with revenue per seat down by 6.4%. Load factor was up a fraction at 91.6%. The company expects capacity to grow by 9 percent in 2017 as it adds aircraft and moves the balance of its fleet from the Airbus A319 to the A320 and A320neo. easyJet has 130 A320neos on order. “Almost half of our growth next year will be in the UK, with significant growth also in Switzerland, France and Italy,” CE Carolyn McCall said.<br/>
unaligned
EasyJet plans to grow fast at the airport serving Venice, city of dreams and lovers. Also at Luton, town of industrial estates and Lorraine Chase, where the low-cost airline is headquartered. How will this play with Sir Stelios Haji-Ioannou, shareholder of frosty communiqués and no-confidence votes? Badly, one fears. EasyJet endured a stinker of a year. Terrorism closed some popular resorts in Muslim countries. Cheap fuel emboldened rivals to expand capacity. Weak sterling, in which easyJet reports, raised costs. Profits before tax crashed 28% to GBP495m. Yet the group, helmed by shrewd ex-Guardian boss Dame Carolyn McCall, plans to raise gross capex from GBP650m next year to more than GBP1b in both 2018 and 2019. She wants to increase the fleet of Airbuses from 257 to more than 300. She believes the business, in which founder Sir Stelios controls 34% of shares, will need more seats as legacy European airlines atrophy. EasyJet has net cash of GBP213m and would shade into net debt only in 2018, the peak year for investment. <br/>