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Budget carrier easyJet factors in £105m Brexit hit in 2017

The discount airline says the foreign-exchange hit, a result of the drop in sterling versus the euro and dollar, may cost it £105m this financial year
January 24, 2017

The effects of the vote for Brexit aren't doing budget airline easyJet (EZJ) any favours. After a tough 2016, the company said the fall in sterling against the company's major trading currencies of the euro and dollar contributed to costs being £35m higher than expected - the full-year impact will be £105m.

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Aggressive expansion plans have been maintained against what some commentators say is a decade-high capacity level. Passenger growth of 8.2 per cent suggests easyJet is winning share, but revenue per seat - a key industry metric - dropped 8.2 per cent on a constant-currency basis and 1.2 per cent on a reported basis. What's more, costs per seat rose 1.1 per cent on a constant-currency basis if fuel is excluded.