EasyJet says it’s benefitted from British Airways and Ryanair strikes
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September was a month of strikes in European commercial aviation. Both British Airways and Ryanair saw massive strikes from crew, resulting in thousands of cancellations for passengers. And, as a result, one carrier benefitted from their losses — EasyJet.
The low-cost carrier said on Tuesday that the strikes between the two carriers helped its revenue per seat increase by 0.8% in the second half. Previously, the carrier expected the figure to be “slightly down”.
“As a result of our self-help initiatives and the increased demand due to disruption at British Airways and Ryanair, we anticipate achieving headline profit before tax for the full year 2019 of between £420 million and £430 million, in the upper half of our previous guidance range”, EasyJet CEO Johan Lundgren said.
The carrier had previously expected a full-year profit of £400 million to £440 million, according to The Guardian. However, its pretax profits for the year through 30 September are below last year’s of £578 million.
Meanwhile, International Airline Group-owned British Airways said that the carrier’s BALPA strikes could reduce the year’s profits by £122 million.
While EasyJet has benefitted from the strikes at two of its rival carriers and the demise of a third in Thomas Cook, investors are still worried about the future of the carrier’s profits in a post-Brexit market.
“The full ramifications of the UK’s departure from the EU have yet to wash through, either in terms of any future sterling weakness, which could crimp consumer demand or indeed additional travel regulations, which would add further cost”, said Richard Hunter, head of markets at Interactive Investor.
Featured photo by Sean Gallup/Getty Images.