It's been a year easyJet (EZJ) will largely want to forget. It suffered an almost £240m hit to pre-tax profit due to strikes and weather-induced cancellations, as well as the negative effects of sterling's drop against the dollar and euro. This also explained the steep drop in operating profits of more than a quarter. The 6.9 per cent fall in constant currency revenue per seat could also not be offset by the 1.1 per cent cost reduction per seat on the same basis. But chief executive Carolyn McCall said the larger 186-seat A320neos it has on order will have a 13-14 per cent cost per seat benefit compared with the existing 156-seat A319s.
While 2016 was tough, easyJet is looking to take control of 2017. Nearly half its growth will be in the UK this financial year, cementing its number one position here as rivals Ryanair (RYA) and Wizz Air (WIZZ) cool UK growth plans. And Ms McCall announced the group had nearly completed the process of launching a Europe-based operating company securing the 30 per cent of its network that operates wholly between or within continental countries. This should shield it from any negative Brexit implications.