EasyJet’s losses widen on sterling weakness

EasyJet plunged into its worst first-half loss for six years as the weak pound and timing of Easter weighed heavily on the low-cost airline. Despite the disappointing results, CE Dame Carolyn McCall said the carrier was poised to take advantage of turmoil in the wider European airline industry. It blamed the performance on a GBP82m hit from the weaker pound, while the later timing of Easter this year had a negative impact of about GBP45m. EasyJet’s results come following a tough year for European airlines, which have been struggling with economic uncertainty unleashed by Brexit, the effect of the terror attacks in the EU and a glut of new capacity that is pushing down fares. Despite the widening losses, Dame Carolyn gave an upbeat outlook, pointing towards an improvement in bookings for H2 this year and signs of capacity growth easing from competitors. About 77% of easyJet’s seats have already been sold for Q3, and 55% for Q4, up from the same time last year, the company said. It also revealed plans to modify its aircraft order with Airbus, converting orders for 30 A320s into larger A321 Neos, which have 49 more seats. Dame Carolyn said the bigger planes would help it increase capacity in slot-constrained airports at peak times, such as Geneva, Amsterdam and London Gatwick, as well as cut costs by about 9%. “We are seeing real opportunities in short-haul Europe . . . you can see some capacity is coming out already and weaker players are getting weaker. There are a lot of things that are very much in our interest,” said Dame Carolyn.<br/>