Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Beach holidays help easyJet recover

Tuesday, May 10, 2016 - 01:19

British low-cost carrier easyJet swung to a half-year loss after attacks on European capitals and travel strikes put customers off from flying. Sonia Legg reports

▲ Hide Transcript

View Transcript

Brits can't resist the pull of the beach. At least that's what easyJet's half year results seem to suggest. Europe's second largest low-cost carrier says strong demand for beach holidays to Spain, Portugal and Greece is making up for a drop in travelling in the wake of recent attacks in Egypt and elsewhere. SOUNDBITE: CMC Markets, Market Analyst, Michael Hewson, saying (English): "Obviously there was the terrorist attacks in Paris and Brussels and also the air traffic control strikes in France which have hit revenue in the airline sector so I don't think it is a surprise that easyJet posted a loss - certainly Carolyn McCall does seem fairly optimistic about the future - let's hope that is the case as we head into a summer of sport in 2016." easyJet suffered a first half loss of 24 million pounds - well down on the 7 million profit it made this time last year. But it expects to be back in the red by the end of September - predicting a pretax profit of more than 720 million pounds. That'll allow the airline to increase its dividend payout ratio by a quarter to 50 percent of post-tax income. Competition from larger rival Ryanair and some new budget airlines remains a problem. And low fuel prices aren't a huge help there - they allow all airlines to cut fares.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Beach holidays help easyJet recover

Tuesday, May 10, 2016 - 01:19