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easyJet shares slump despite profit

Tuesday, May 12, 2015 - 00:58

easyJet says it faces tougher business conditions in the third quarter. As Hayley Platt reports the cost of strike-related disruption and an expected dip in underlying revenue sent the British budget airline's shares down 8 percent.

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easyJet made a profit in the first half for the first time. The winter months are traditionally slow for airlines. But thanks to a strong ski season Europe's second largest budget airline made £7 million before tax. But its success was over-shawdowed by a near 8 percent fall in the share price as investors looked ahead. easyJet's expecting a hit of around £25 million pounds in the third quarter due to strikes by air traffic controllers in France. Six hundred flights were cancelled The airline still expects a profit for the full year, as forward bookings are steady and lower oil prices will shrink the fuel bill by up to 120 million pounds. easyJet said it would cut its ticket prices to reflect that and compete with rivals. It's biggest competitor Ryanair - Europe's largest low cost carrier - is doing the same. It too is predicting only a small rise in profits for the year ahead.

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easyJet shares slump despite profit

Tuesday, May 12, 2015 - 00:58