easyJet profits down, reorganises company

Profits fall 28% as it re-registers company after Brexit
A year of “significant challenges” has hit profits at easyJet, it is being reported this morning. Pre-tax profits for the year ending September 30 fell 27.9% to £495 million (€570 million), in line with a warning given last month.
The airline blamed the impact of terror attacks, air traffic control strikes and the weakness of pound sterling for the figures, although passenger numbers for the year were up 6.6% to 73.1 million. Revenues fell 0.4% to £4.67 billion as fare cuts continued.
Carolyn McCall, easyJet’s chief executive, told BBC radio that there was no lack of demand but there had been a series of “external shocks” in the face of which the carrier had “achieved a resilient performance”.
The carrier also confirms it has set up an operating company based in continental Europe ahead of the UK’s exit from the EU.
In analysis, BBC business presenter Dominic O’Connell, said: “Many had thought it would set up a subsidiary – it already has a Swiss subsidiary to deal with a similar route-rights complication – but instead Easyjet itself will become the entity inside the union. The British airline will become the subsidiary”, even though “the FTSE 100 company will retain its London listing and Luton headquarters”.