easyJet revenues up 5.3%; ash cloud cost £65m
29.07.10
easyJet reported a 5.3% increase in revenue to £759.2m in the quarter to June 30, up from £720.8m last year, despite the affects of the ash cloud. The budget airline said it continues to anticipate pre tax profit for the year to 30 September of £100m - £150m at current exchange rates and fuel prices.
Passenger numbers increased by 3.5% to 12.3m; seats rose 1.7% to 14.3m; and load factor grew 1.4 percentage points to 86.1%. The airline said forward bookings were in line with the prior year. The ash cloud, which spread across Europe in April, caused an 8% drop in passengers during the period.
The ash cloud closures caused significant disruption to the operation in the period with 7314 flights cancelled impacting nearly a million passengers and costing an estimated £65m in lost contribution and additional costs caused by application of EU Regulation 2004/261 passenger compensation rules.
easyJet said the financial impact of the volcanic ash cloud would have been only around £20m if ‘more appropriate’ flight restrictions had been in place. It said it was disappointed by the decision not to compensate airlines and intends to explore all options to secure compensation for the losses incurred.
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