Ash cloud cost easyJet around £65m
EasyJet claims to be on track to report an annual pre-tax profit of between £100m and £150m.
It said despite the volcanic ash disruption, which caused 7,314 flights to be cancelled and the loss of an estimated £65m, sales rose by 5.3% to £759.2m in the three months to the end of June.
It said the ash cloud, which spread across Europe in April, had caused an 8% drop in passengers during the period.
Chief executive Carolyn McCall said: “EasyJet has continued to deliver a good commercial performance in the quarter with total revenue up 5.3%.
“This was in spite of the challenges presented by significant disruption caused by volcanic ash and, more recently, the combination of air traffic control industrial action and crewing issues in some parts of our network.
“We have put a mitigation plan in place in response to these recent issues in order to minimise the future impact to our passengers and staff.â€
EasyJet said the financial impact of the volcanic ash cloud would have been only around £20 million if “more appropriate†flight restrictions had been in place.
It said it was very disappointed by the decision not to compensate airlines and intends to explore all options to secure compensation for the losses incurred.
The interim statement also said the airline was awaiting judgement in relation to the court case over the interpretation of the brand licence agreement with easyGroup IP.
“Following the trial, easyGroup’s lawyers have sent a letter to easyJet purporting that its on time performance is in breach of the Brand Licence and have given the company 90 days to cure the alleged breach or it will have the right to terminate the Brand Licence,” it said.
“EasyJet is advised that that the Brand Licence does not impose or create any contractual obligation regarding on time performance and consequently easyGroup has no right to terminate the Brand Licence.†See earlier TravelMole story.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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