Company Officials Cite A 'Challenging' Year

After a year of "significant challenges", easyJet has reported that profits fell 27.9 percent last year.

The airline reported that the fall in profits came despite a 6.6 percent increase in passengers and a record load factor of 91.6 percent.

Pre-tax profits fell from about $852 million to approximately $614.6 million, due largely to labor disputes which led to service disruption, weather and airport issues, and an increase in market capacity in the low-cost sector.

“easyJet achieved a resilient performance in 2016, in the face of significant challenges including a series of external events and foreign exchange headwinds," said CEO Carolyn McCall. 

"Over the last year we have carried a record 73 million passengers who have enjoyed a third successive year of falling fares.  This great value combined with our friendly service on Europe's leading network means that passenger loyalty continues to grow with 54 million of them flying with us again in 2016 - 21 million more than five years ago.

“The team has worked diligently throughout the year to drive out cost and secure our strong number one positions through disciplined growth.   This has enabled easyJet to deliver almost half a billion of profit and an attractive dividend in line with our 50% pay out policy.

“Looking ahead, the easyJet model remains strong as does the demand environment and we continue to see opportunities in the medium term to grow revenue, profit and shareholder returns.  In a tougher operating environment strong airlines like easyJet will get stronger and we will build on our already well-established network. 

“Almost half of our growth next year will be in the UK, with significant growth also in Switzerland, France and Italy. Our strategy of strengthening our positions at our key airports will see double digit growth in key bases in London, Manchester, Venice, Berlin and Amsterdam.”

(Source: easyJet news release. Image from file)

FMI: www.easyjet.com/en