As Easyjet PLC (LON:EZJ) continues to adjust following the Brexit vote it is expecting to take a £90mln hit for foreign exchange in the current financial year.
It comes just a month after a similar warning regarding a £90mln forex dent in 2016 profits, which were today revealed to be down by almost a third.
Results for the financial year ended September 30 revealed a drop in profit after tax to £495mln, from £686mln in 2015.
The Europe-focused budget airline nonetheless says market demand is strong, and it expects almost half of its growth to come from the UK in 2017.
Easyjet boss Carolyn McCall highlights that the group is strengthening at key airports, with ‘double digit’ growth anticipated from bases in London, Manchester, Venice, Berlin and Amsterdam.
At the same time the group is benefiting from lower fuel prices, forecasting a £245-276mln drop in its fuel bill for 2017. It says that savings will be passed on to passengers, and, as such, revenue per seat will also reduce.
Easyjet carried a record number of passengers in fiscal 2016, with numbers up 6.6% from the preceding year.
At £4.66bn revenue was down 0.4% on the prior year, while revenue per seat reduced by 6.4% (6.9% based on constant currencies).
The dividend - as its Easyjet’s policy is to pay out 50% of its profit after tax – was down to 53.8p per share, from 55.2p for the year before.
McCall called it a resilient performance ‘in the face of significant challenges’.
"Looking ahead, the Easyjet model remains strong as does the demand environment and we continue to see opportunities in the medium term to grow revenue, profit and shareholder returns,” she said.
“In a tougher operating environment strong airlines like easyJet will get stronger and we will build on our already well-established network.”