Ash problems cost easyJet £50m - £75m
11.05.10
The disruption caused by the recent volcanic eruption in Iceland will cost easyJet between £50m - £75m. It caused the budget airline to lower its profit forecast for the year to the end of September to between £100m - £150m, down from its previous estimate of £175m - £200m.
The airline reported a £78.7m loss in the 6 months to the end of March, against a £129.8m loss a year ago, as its revenues for the 6 month period increased by 13% to £1.17bn. It also increased its market share of short-haul flights to 7.6%, up from 6.5%.
easyJet said the disruption caused by the volcanic ash cloud last month forced it to cancel 6512 flights, disrupting the journeys of 850,000 passengers. The airline said it had also suffered costs of £21m due to the ‘exceptional snowfall’ in December and January.
Despite the disruption, easyJet said it was on course to deliver ‘remarkable performance’. Chief executive Andy Harrison said: ‘We will deliver substantial profit growth in 2010, despite the worst recession in 70 years.'
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