EasyJet tanks on loss outlook
Published 21/01/2011 | 05:00
SHARES in low-cost carrier EasyJet tanked as much as 17pc yesterday after it predicted that rising fuel costs will propel it to a loss for the six months ending the coming March of between £140m (€165) and £160m (€188m).
Shares in EasyJet peer Ryanair slumped 6.5pc to €3.49 in Dublin. The projected loss for EasyJet, in what is typically a loss-making period for the airline, is about double the loss it posted in the corresponding period last year.
It marks a disappointing out-turn for the relatively new chief executive of EasyJet, Carolyn McCall, the aviation outsider who took over the reins at the airline less than a year ago.
The former CEO of Guardian Media Group, Ms McCall, said yesterday that airports needed to increase their infrastructure capital expenditure following snow disruption in the past two years. She said the chaos caused "highlights the need for airports to invest in the appropriate infrastructure to keep passengers moving".
EasyJet incurred an £18m charge as a result of the bad weather, while air traffic control strike action in France and Spain cost £6m, while the airline also shouldered a £7m cost contribution as a result.