easyJet provides early update on its third quarter 2016 results

Ahead of easyJet’s third quarter results, which are due to be announced on 21 July 2016, the carrier has revealed it’s experienced 1,061 cancellations during the period due to a significant number of disruption events.

easyJet attributes this number to the continued strike action by French Air Traffic Controllers; runway and congestion issues at Gatwick airport; and severe weather and knock-on cancellations across its network.In June alone, easyJet has experienced over 700 cancellations to date. In June 2015, the airline saw 487 cancellations, of which 420 related to the Fiumicino fire and were largely pre-planned.
easyJet claims these incidents – together with the Egyptair tragedy – have resulted in some drop-off in consumer demand, leading to lower yield and impacting third quarter profit before tax by approximately £28 million.
The carrier estimates the negative impact on third quarter revenue per seat stands at around 1.6 percentage points, meaning that revenue per seat at constant currency in the third quarter will fall by around 8.6% compared to the 7% decrease predicted at the half year results. This is due to disrupted passengers being allocated seats that normally would have been sold close to departure for a higher yield.
Following the outcome of the EU Referendum, easyJet also anticipates that additional economic and consumer uncertainty will result in its revenue per seat at constant currency decreasing by at least a mid-single digit percentage for the second half of the year in comparison to the second half of 2015.
In addition, recent movements in fuel prices and exchange rates are now expected to add around £25 million of additional cost in the year to that guided at easyJet’s half year results.

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