Security Fears, Weak Pound Punish Britain’s EasyJet

London: British budget airline easyJet warned that annual profit had fallen by more than a quarter and hinted that trading would remain tough as fares continue to decline and a weak pound weighs, sending its shares down 6 per cent. The profit decline is the first since 2009 and in part reflects easyJet’s exposure to the security-hit destinations of Egypt and Turkey and the French cities of Paris and Nice.
That combined with the devaluation of the pound since Britain voted to leave the EU in June mean that easyJet has fared worse this year than its bigger low-cost rival, Ireland’s Ryanair. Shares in easyJet dropped 6.4 per cent to 938 pence by 0840/GMT, their lowest level since 2013. They are down 45 per cent this year, the second worst performer on Britain’s blue chip 100 index.