EasyJet to see loss as revenues hit by terrorism

Terror attacks have impacted EasyJet's bottom line. Picture: Ian Georgeson

Terror attacks have impacted EasyJet's bottom line. Picture: Ian Georgeson

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Budget airline EasyJet is set to reveal it has fallen into the red at the half-way stage this week, when it quantifies the financial impact of the terrorist attacks in Paris, Brussels and Egypt.

Analysts at Numis Securities expect the carrier to swing to a £15 million interim loss, a turnaround from an unusual £7m profit a year ago in the traditionally weaker winter period for the industry.

EasyJet said in January that the Paris attacks and the suspension of flights on routes to the popular Egyptian tourist destination of Sharm El Sheikh following the Russian airline crash left revenues 3.7 per cent down in its first trading quarter.

Numis forecasts a £45m hit to EasyJet from those events. The airline has also estimated that adverse exchange rate movements would cost it about £25m by the end of its first trading half, whose results are due tomorrow.

The bombings in Brussels in March are also expected to have hit Q2 revenues.

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