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Profit warning sends easyJet shares crashing
Shares in low-cost airline, easyJet, took a nosedive on Wednesday, following a profits warning.
Reporting its first half results, easyJet announced pre-tax losses of £27.3m, while admitting that passenger numbers for April were below expectations.
The news sent shares in the company spiralling down nearly 25 per cent to just 219p – shaving around £250m off the airline’s market value.
Chief executive, Ray Webster, blamed fierce competition in the low-fare airline market for the company’s difficulties.
“We are currently seeing unprofitable and unrealistic pricing by airlines across all the sectors of the European industry, seeking to grow or maintain their market share,” he said.
“Given the increasingly competitive marketplace, it is appropriate now to be cautious about the performance for the full financial year.”
The company also reported that its load factor for April, a figure which represents the number of passengers as a proportion of the number of seats available, had declined 3 per cent from the year before to 82 per cent. Details: www.easyjet.com
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