EasyJet shares dive on profit-warning

LONDON: EasyJet shares slumped on Tuesday as the budget carrier said a strike by French air traffic controllers last month would slash profits.
It comes after the British airline said it had managed an unlikely profit during its first half, a period when carriers normally report losses, thanks to lower fuel costs and a stronger pound. But EasyJet shares tumbled almost 8.0 percent in morning deals in London after it said that April’s strike action by French air traffic controllers would hit pre-tax profits by £25 million ($39 million, 35 million euros).
“Warning of turbulence ahead has taken the shine off a sunny start after delivering profits in its seasonally weaker first half,” said Peter Ward, dealer at London Capital Group.
“Cheaper fuel costs helped the first half as expected, but... French strike action as EasyJet embarks upon its key summer travel season has ruffled investors.”
The British airline reported a net profit of £5.0 million in the six months to the end of March compared with a loss after tax of £41 million one year earlier.
EasyJet, like its rivals, tends to post losses during the northern hemisphere winter when it carries fewer passengers compared with the peak summer holiday season.