easyJet profit down on revenue, currency falls

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/>