EasyJet warned that recent industrial action by French air traffic controllers and higher fuel prices are set to hit its full-year profit, taking the shine off a strong third-quarter performance.
The British low-cost carrier said the combined financial impact was around 25 million British Pounds, with French ATC disruption accounting for 15 million pounds and fuel costs for 10 million pounds, according to a trading update.
The warning came as the airline reported a headline profit before tax of 286 million British Pounds for the three months ended June 30, an increase of 50 million pounds from the same period last year, driven by strong demand and the timing of Easter.
“We are extremely unhappy with the strike action by the French ATC in early July, which as well as presenting unacceptable challenges for customers and crew also created unexpected and significant costs for all airlines,” Chief Executive Kenton Jarvis said in a statement.
Despite the headwinds, easyJet said it still expects good profit growth for the full year.
Its holidays division continues to perform strongly and is expected to deliver a profit before tax of more than 235 million British Pounds for the fiscal year, the company said.
The airline said 67% of its fourth-quarter capacity has been sold, a slight increase from the previous year.