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EasyJet braced for financial blow from Brussels attacks

Download: Printable PDF Date: 09 May 2016 03:50 (UTC) category:
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EasyJet braced for financial blow from Brussels attacks - Airlines publisher
Tatjana Obrazcova
Country: United Kingdom Aircraft: Airplanes Airline: EasyJet
Source: The Telegraph

EASYJET is expected to take a hit from this year’s spate of terrorist attacks after a fall in bookings led to “very tough” conditions for airlines.

Analyst Wyn Ellis, of Numis, believes the bombings in Brussels, as well as renewed violence in Egypt, will have cost easyJet around £45m in the first half of its financial year.

A woman lays flowers on a memorial to victims of the Brussels attacks

Since the attacks in Belgium, which left 32 people dead and hundreds injured, demand for flight tickets is believed to have fallen. “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 said.

The airline is reporting first-half results this week.

Airlines typically make a loss in the winter months before turning a profit in the tourist-heavy summer season, but this time easyJet’s losses may have increased.

Barclays believes the airline will report a pre-tax loss of between £25m and £35m for the six months ending March 31.

Meanwhile, rival budget carrier Ryanair is also likely to report lower profits due to the attacks.





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