Strikes and terror attacks set to hit easyJet winter figures

Strikes and terror attacks set to hit easyJet winter figures

The spate of recent terrorist attacks is likely to have cost easyJet as much as £45 million in the first half of its financial year.

Analyst Wyn Ellis, of Numis, believes the bombings in Brussels together with renewed violence in Egypt, will have hit bookings.

“Although Brussels accounts for only about 1pc of easyJet’s capacity, we believe that the bombings are likely to have a knock-on impact on short-haul city-to-city travel and on customer confidence,” he was reported as telling the Mail on Sunday ahead of the budget airline’s first half results due to tomorrow (Tuesday). 

Barclays believes the airline will report a pre-tax loss of between £25 million and £35 million for the six months ending March 31 – the traditional winter loss-making period.

Stockbroker Morgan Stanley predicted that easyJet would reveal an interim pre-tax loss of £23.5 million.

It revised its full year profit forecast down by £37 million to £701 million, including the impact of French air traffic control strikes as well as the Brussels attacks in March.

Meanwhile, Tui is expected to reveal increased bookings to Spain as well as long haul destinations with half year results on Wednesday.

The Thomson and First Choice parent said earlier this year that bookings to Turkey, which accounted for 14% of its carryings last year, had fallen by 40% because of security fears.

However, analysts remain positive about the company, which has reacted swiftly to events, by adding more capacity in the Canary Islands after the attack on the Russian Metrojet aircraft over Egypt’s Sinai peninsula last October.

Tui chief executive Friedrich Joussen has said that the group remains “well positioned” to meet its target of delivering underlying full-year earnings growth of at least 10%. In the UK, revenues for this summer were up 8%. 

Tui last month confirmed that it was selling its Hotelbeds division to private equity groups including Cinven for £1.2 billion.


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