50% Drop Reported by easyJet in Full Year Profits
British low budget airline easyJet has posted a huge drop of over 50% in its full-year earnings for the year up-to September end. Rapidly rising fuel costs have been blamed by the carrier for the loss. The airline recorded earnings of ?54.7 Million for the current full-year, a substantial drop from the ?110.2 Million recorded for the same period last year.
The drop in earnings has come despite a 13% surge in sales and a 3.4% rise on passengers' numbers. While sales rose from ?2.36 Billion a year ago to ?2.67 Billion, number of travelers recorded was 45.2 million. Despite the fall in earnings, easyJet's Chief Executive Andy Harrison said,
"We are doing exceptionally well at the moment", and the reason shared by him for this was that the carrier "offered real value, the best prices and the most convenient airports".
Mr. Harrison said that the airline had been hit in most part by the heavy fuel prices, something which easyJet will balance with its fuel buying policy as it is expected to reap profits of up-to ?100 Million in 2010. easyJet shares, continuing with their three month journey of recording consecutive rises, surged by 0.4% in early trading to a new price of 392.4 pence per share.