EasyJet hit by bad weather and strikes

EasyJet has taken a £31m hit due to the strike action and bad weather that paralysed European airports last December.

EasyJet: marketing attacks rival's destination airports
EasyJet: marketing attacks rival's destination airports

Carolyn McCall, the budget airline's chief executive, has also warned it faces pressures from the uncertain European economic outlook.

According to easyJet's interim management statement, revenue in the quarter ending 31 December 2010 climbed 7.5% to £654m.

Strikes resulted in costs of £6m, while the bad weather caused £18m in costs. The combination led to the airline missing out on £7m in revenue.

EasyJet was hit by air traffic controllers (ATC) strikes in France during the period and airport runways across Europe closed over the Christmas season. A significant amount of its flights leave from Gatwick and Luton, which both suffered less than Heathrow.

McCall said: "Against a difficult economic backdrop aggravated by severe weather and ATC strike action, easyJet was able to deliver a solid trading performance and grow total revenue by 7.5% to £654m while improving its position in mainland Europe."

Looking ahead, the group warned "the economic outlook in Europe remains uncertain and the higher market price of fuel will inevitably put pressure on margins in the short term".

Revenue grew to £654m as the airline booked 7.7% more seats on the year to £13.8m.

Ancillary revenue per person, such the check-in bag change, fell 2.7% to £9.90 to £9.63 in the period.

In November, easyJet disclosed its plan to focus on business travellers by offering a new flexible fare.

in a bid to reposition itself and move its marketing beyond the recent price wars campaigns that attack rivals.

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