Published on : Wednesday, January 25, 2017
Right after easyJet has announced that due to the fall in sterling, the company could lose around £105 million from the full year profit; the shares of the budget airlines have witnessed an 8 per cent drop on 24th January, Tuesday.
The news came as a shock to the share holders of the company after the chief executive of the airline, Dame Carolyn McCall has described the first-quarter result of the airline to be ‘solid’ and completely in line with the expectations of easyJet.
Apart from disclosing the probability of losing £105 million from the full-year profit, the founder and stakeholder of easyJet, Sir Stelios Haji-Ioannou has also announced that in order to protest against easyJet’s plan to expand its fleet, he is going to use a part of his shares against the re-election of the chairman of the airline.
EasyJet has also informed that their revenue per seat also improved ‘slightly more than previously guided’ due to its growing demand in the European market. But in comparison to the previous year, it has witnessed a decline of 8.2 per cent at the constant currency rates. During the announcement, the airline has informed that the revenue per seat is likely to decline in the first part of the financial year by single digits. EasyJet has announced that during the 2017 financial year, the company is expecting to experience a blow of £105 million on the profit.
Right after the announcement has been made by the airline, Sir Stelios has informed that the EasyGroup is going to protest against John Barton, the chairman of the airline.
Sir Stelios has expressed that clearly other investors are extremely unimpressed by the decline in the revenue per seat and therefore, EasyGroup will make a protest vote against the company’s ‘fleet plan’ at the upcoming AGM on 9th February.
He has also informed that the best way to increase the earnings per share and send the share price up again is to reduce the incremental aircraft in the fleet from 2018 onwards.
Dame Carolyn has informed that the weakness of sterling and the impact of fuel combined are £35 million worse than previously expected.