easyJet share price heads south as airline’s first-half loss widens

on May 16, 2017
Updated: Oct 21, 2019

Shares in easyJet (LON:EZJ) have fallen deep into the red this morning, as the blue-chip carrier posted a larger loss for the first half of its financial year. The company’s performance was affected by the weakness in sterling, as well as the timing of Easter.

As of 09:28 BST, easyJet’s share price had lost 5.88 percent to 1,233.00p, underperforming the broader London market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.28 percent higher at 7,475.37 points. The group’s shares have lost more than 14 percent of their value over the past year, but are up by just under 23 percent in the year-to-date.
easyJet announced in a statement this morning that its half-year loss had widened to £236 million in the six months ended March 31, compared with a £18-million loss in the prior-year period. The carrier’s headline loss before tax meanwhile deepened by £191 million to £212 million, reflecting the move of Easter into the second half of the year, as well as a negative net currency impact of £82 million.

“easyJet delivered a resilient performance during the winter months,” easyJet’s chief executive Carolyn McCall commented in the statement, adding that the airline’s bookings for the summer were ahead of last year.
“Looking ahead, we are seeing an improving revenue per seat trend as well as the continued reduction of competitor capacity growth. Cost performance for the full year will continue to be strong,” she added.
easyJet further updated investors on its Brexit plans, noting that it was currently in the process of establishing an air operator’s certificate (AOC) in another EU member state. The blue-chip carrier said that it had incurred £1 million in setup costs so far, with those expected to total up to £10 million over three years, mostly driven by the costs to re-register aircraft.
As of 10:04 BST, Tuesday, 16 May, easyJet plc share price is 1,226.20p.

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