EasyJet's shares tumbled more than six per cent this morning after it posted half-year losses that were ten times larger than the equivalent figure for last year.
The budget airline lost £212m during the six months to March, up from £21m in 2016.
Of this, £82m was the impact of the pound's slump since the Brexit vote last year, which has reduced the value of revenues booked in foreign currencies.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Easyjet's results were also hit by the timing of Easter, a holiday in which families, in particular, tend to travel. Last year, it fell during March and counted towards first-half results. This year, however, it fell in April.
Chief executive Carolyn McCall said the results were "resilient" and "in line with market expectations".
She also said it was usual for travel firms and airlines to make losses in the first half of the year covering the winter season, with profits concentrated into the second half, which includes the peak summer season.
She told the BBC: "Nineteen out of 21 years, Easyjet has lost money in the winter and actually, airlines do lose money in the winter."
Brexit's effect on travel firms is also concerning analysts.
The drop in the pound is not only affecting the bottom-line for companies, the knock-on effect it has on inflation is leading to a rise in living costs, which could mean people spending less on luxuries such as holidays.
However, McCall said: "British people - and all Europeans - value their holidays and so they actually prioritise their holidays over everything else.
"One survey said British families were saying they would pay for a family holiday over buying kids' clothes."
EasyJet's revenue grew 3.2 per cent to £1.8bn and it flew a record 33.8 million passengers in the six months, up nine per cent from a year before.
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right nowSpeed Read Britain is currently in the grip of an ‘employment crisis’
-
Will the energy war hurt Europe more than Russia?Speed Read European Commission proposes a total ban on Russian oil
-
Will Elon Musk manage to take over Twitter?Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
-
Shoppers urged not to buy into dodgy Black Friday dealsSpeed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
-
Ryanair: readying for departure from LondonSpeed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
-
Out of fashion: Asos ‘curse’ has struck againSpeed Read Share price tumbles following the departure of CEO Nick Beighton
-
Universal Music’s blockbuster listing: don’t stop me now…Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
-
EasyJet/Wizz: battle for air supremacySpeed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
