EasyJet is on course to dive out of the FTSE 100 this week, as part of the index’s quarterly reshuffle. The airline has seen its value decline by 40% over one year and issued a profit warning last month, sending its shares down 9% on the day. The firm blamed a larger than expected impact from sterling weakness for an anticipated GBP105m hit on earnings. One stockbroker said in a note: “EasyJet is maintaining its aggressive capacity plans with little scope for cost efficiencies while operational issues are addressed and fuel ticks up. Adverse foreign exchange is likely to keep consensus under pressure.” An analyst said: "The group has seen its share price remain under pressure since the Brexit vote, as the market highlighted concerns over future contracts and their length, which has dropped from an average of 8 years to 7.” <br/>
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Condor Airlines has outlined what it called the largest US expansion in its 60-year history. The airline said it will add nonstop service from Frankfurt to San Diego, Pittsburgh and New Orleans. It will also add nonstop service from Munich to Seattle and Las Vegas. All routes will be operated using Boeing 767-300ERs. Condor is part of Thomas Cook Group Airlines—which also includes UK-based Thomas Cook Airlines, Thomas Cook Airlines Belgium and Thomas Cook Airlines Scandinavia—has seen a surge in flights to and from North America. Passenger numbers from North America to Europe have more than doubled in the last 3 years, with 9 routes introduced within this period. More than 1m passengers used the airline’s services via the North Atlantic in 2016. <br/>
Air Caraibes CE Marc Rochet believes that last year's strike in reaction to the creation of long-haul low-cost offshoot French Blue was a "very good thing" for the two airlines. Rochet conceded that Air Caraibes management had been "partly responsible" for the 3-day strike by staff in April "because the vision we gave to them [was] not very clear". But following the industrial action, cabin crew and pilot unions "have agreed that we should be in the long-haul low-cost market, so they understood that if we didn't do that we would be out of the market one day, and that will be a big mistake", Rochet says. A settlement was reached limiting the growth of French Blue for 3 years until 2019 in exchange for a 10% cost reduction. <br/>