The turbulence caused by the weak pound and terror attacks in short-haul markets such as Germany and Turkey appears to have eased a little for budget airline easyJet (LON:EZJ).
However it is still facing headwinds, with revenue per seat receding in the first quarter.
Today's trading update was greeted by an early 7% markdown of the share price.
easyJet reported an 8.2% rise in passenger numbers in its financial first-quarter.
This was offset by a fall in revenue per seat – although the figure of £51.64 was a slight improvement on guidance.
Looking ahead, the budget carrier said the “pricing and operating environment remains tough”.
However it is predicting it will deliver seat capacity growth of 9% this year.
"The underlying year-on-year revenue per seat trend continues to improve, supported by resilient demand across all our European markets. Forward bookings are ahead of last year," said chief executive Carolyn McCall.
easyJet, which was a serial profit-warner in 2016 as the impact of the weak pound and terror alerts hit foreign travel, reiterated previous guidance that the slump in the pound would wipe £105mln from 2016 profits.
The shares, which climbed above £10 again earlier this month, succumbed to a bout of profit-taking and fell 75p in early trade to £10.01.