EasyJet down 10% as strike-hit April knocks outlook

EasyJet’s outlook has been knocked by a difficult April – with air traffic control strikes trimming profit and the Germanwings crash in France deterring customers from booking – sending its shares down almost 10%.

Europe’s second-biggest budget carrier, behind Ryanair, said it is positioned for continued growth in its financial year to September, having turned a profit in the weaker winter season for the first time.

Yesterday, however, analysts said they would reduce annual profit forecasts to reflect the £25m (€35m) hit from the French air traffic control strikes that led to the cancellation of more than 600 flights.

CEO Carolyn McCall described April as a “one-off horrible month”, saying passengers were deterred from booking as a result of the threat of air traffic strikes, as well as the Germanwings disaster in March.

EasyJet has typically made a loss over winter months in which fewer people fly. But the company reported pre-tax profits of £7m in the six months to the end of March; the upper end of forecasts.

The airline has forecast revenue and profit growth for the full year, giving no further details other than advance bookings being in line with last year and forecasting its fuel bill would shrink by up to £120m due to lower oil prices.