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easyJet confident despite security fears

Tuesday, November 17, 2015 - 01:32

easyJet said demand for European flights was resilient and it was ordering 36 more planes to drive its expansion after reporting an 18 percent jump in annual profit. But as Hayley Platt reports the British airline also says it has experienced a ''cooling off'' in demand for travel to France after the Paris attacks.

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A late birthday present for easyJet Just days after marking its 20th anniversary the British low-cost airline has reported an 18 percent rise in full year profits. It was a bumper summer season thanks to cost controls, lower oil prices and a recovering Europe. As a result easyJet is splashing out on 36 new A320s . But CCLA's James Bevan warns of possible turbulence ahead for airlines following the Paris attacks. (SOUNDBITE) (English), CCLA, CHIEF INVESTMENT OFFICER, JAMES BEVAN, SAYING: "In the short term investors would be concerned on two fronts. First they will worry about the impact on sentiment and sentiment affecting both consumer spending but also corporate investment intentions, particularly in the areas of hotel and aeroplane traffic." easyJet said travel to France had cooled slightly after the attacks in Paris But it didn't expect it to last too long. Then came the news that the Kremlin has confirmed a bomb brought down the Russian jet as it flew over Egypt last month. Shares fell almost 5 percent. CMC's Michael Hewson. (SOUNDBITE) (English) CMC MARKETS, CHIEF MARKET ANALYST, MICHAEL HEWSON, SAYING: "What extra security measures do airlines have to implement in light of these terror attacks and more importantly looking forward I think there has to be some question as to whether or not easyJet's profit and revenue forecast for 2016 are probably a bit on the high side." easyJet says it will continue to keep costs down and hopes to boost passenger numbers by 7 percent over the year.

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easyJet confident despite security fears

Tuesday, November 17, 2015 - 01:32