Falling pound will affect Easyjet’s profits

Easyjet battles heavy drop in the stirling…

Easyjet has said the falling of the pound will cut its profits by £105m this year.

In the final three months of 2016 the company saw an 8.3 per cent rise in its passenger numbers to 17.4 million.

However, with the fall in the pound its revenue per seat was down by 1.2 per cent to £51.64 per seat.

The carrier’s shares fell by seven per cent.

Easyjet’s chief executive, Caroline McCall, said “Easyjet has delivered a solid first quarter (the final three months of 2016) with revenue, cost and passenger numbers in line with expectation. This is despite tough pricing and operating environment.”

Since the Brexit vote in June 2016 the fall in the pound against the dollar has dropped by around 17 per cent.

Easyjet had originally estimated that the weaker pound would cost it £90m in 2017.

Easyjet is currently in the process of increasing its presence on European mainland ready for when the UK leaves the EU.

This is due to the fact that current EU flying rights may have to be negotiated, the new company would ensure Easyjet could operate within the EU.