The price of Brexit is writ large for easyJet PLC (LON:EZJ). Perhaps it should even be inscribed on the side of the orange-liveried Airbus passenger planes that depart its base at Luton airport every few minutes.
For the fall in the pound has cost the budget airline £35mln in “adverse exchange rate movements” since June 23, bringing the currency-related impact on results to £90mln in the year ended September.
The fall in the fuel bill by up £80mln caused by lower oil prices acted as something of a counterweight.
That said, EasyJet is guiding the market that it expects pre-tax profits in the order of £490-£495mln, well down on the £686mln it posted a year earlier. According to brokers, the numbers were below City consensus.
The figures were contained in easyJet’s trading update following the close of its financial year.
Looking ahead, the carrier told investors it has an as an opportunity “to build and strengthen its strategic position for the long term”.
Capacity is expected to grow by around 8% in new the financial and around 45% of seats are now sold for the first quarter.
The total expected foreign exchange cost for the company for the 12 months just started is put at £90mln.
“The current environment is tough for all airlines, but history shows that at times like this the strongest airlines become stronger,” said chief executive Carolyn McCall.
“That is why we will continue to invest for the long term success of the business, establishing even stronger market positions, delivering excellent customer service and establishing new revenue opportunities for the future."