Volcanic ash disruption cuts EasyJet profit forecast

12/05/2010

Low cost carrier EasyJet says the disruption caused by the impact of the volcanic ash cloud last month is set to cost the business up to £75 million.

The airline yesterday (May 11th) released its results for the half-year to the end of March, which showed an overall reduction in pre-tax loss of 32 per cent.

The airline also saw total revenue rise by more than 13 per cent to reach almost £1.2 billion, driven by good consumer demand and a decrease in unit fuel costs.

EasyJet chief executive Andy Harrison said the results showed a "remarkable performance" in the face of several major challenges.

However, he said the company had been forced to revise down its original full-year profit guidance from £200 million to £150 million following the volcanic ash disruption.

"This disruption has caused additional cost and lost contribution estimated at between £50 million and £75 million.

"Therefore, the company has revised its profit expectations for the year to a range of £100 million to £150 million at current exchange rates and fuel price," he commented.

All flights across Europe were grounded for almost a week during April after the eruption of the Eyjafjallajokull volcano in Iceland sent a plume of ash billowing across the skies.

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