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'Extraordinary events' kill easyJet profit

Press AssociationPress Association 6/10/2016 Holly Williams

Low-cost airline easyJet has revealed it will take a hit of more than PS200 million ($A332.7 million) from the plunging pound and a series of "extraordinary events" after terrorist attacks and air traffic control strikes have taken their toll.

The carrier warned it will be left nursing at least PS125 million in lost profit after a combination of terror attacks across Europe, Egypt and Tunisia as well as air traffic control strikes in France and political turmoil in Turkey.

EasyJet added that the tumbling value of the pound since the Brexit vote - hitting fresh 31-year lows against the US dollar this week - would cost it PS90 million.

The group said it was expecting profits for the year to September 30 to nosedive by nearly a third, to betwe PS490 million and PS495 million.

It has slashed fares by around 9 per cent year-on-year to boost demand as it has also battled a price war with Ryanair.

EasyJet boss Carolyn McCall said: "We have been disproportionately affected by extraordinary events this year."

"The current environment is tough for all airlines, but history shows that at times like this the strongest airlines become stronger. That is why we will continue to invest for the long-term success of the business," she added.

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