Easyjet not easy money as fuel hedging strategy hit profits
Cheap but not very cheerful. Despite a 13% increase in turnover to £2.6 billion, Britain’s favorite budget airline saw profits fall by more than half from £123.1 million last year to £43.7 million in the 12 months to September 30. The airline was hit by its fuel hedging policy, in which it buys fuel at prices agreed in advance. Movements in the price of oil meant that the company had lost out in the year to September. Cheap flights are not …
Cheap but not very cheerful.
Despite a 13% increase in turnover to £2.6 billion, Britain’s favorite budget airline saw profits fall by more than half from £123.1 million last year to £43.7 million in the 12 months to September 30.
The airline was hit by its fuel hedging policy, in which it buys fuel at prices agreed in advance. Movements in the price of oil meant that the company had lost out in the year to September.
Cheap flights are not expected to be in huge demand over the Winter holiday season either as unemployment put Brits off even the cut-price destinations.
That rival Ryanair reported a fourfold increase in half-year profits won’t help Ease the pain.
More Top Stories
- Bankers, Hotpants and Stilettos
- Expert in Spreadsheets Required
- Female exec sues for £4m in sex discrimination case
- The Lloyds Prayer
- Speculation that acquitted Bear guys may start new hedge fund
- Forbes World’s Most Powerful People – First Brit is No.29 Gordon Brown
- Bank of England – Rebuilding Britain or Blowing a Big Bubble
