Easyjet plummets again after low pound buffets earnings

Easyjet shares nosedived again today after it admitted it is taking an even worse pounding from lower sterling prices than investors knew.

The pound has dropped by about 17% against the dollar since the Brexit vote last June, hitting profits at the airline.

In November, easyjet thought the weaker pound would cost it £90 million in 2017. Today, it said profits will actually be £105 million lower due to sterling.

The shares fell 8% to 994p, and have halved since their peak in April 2015. Operationally, the business seems to be doing well. Revenue was up 7.2% in the first quarter while passenger numbers rose by 8.3% to 17.4 million.

City analysts worry the UK will lose being part of Europe’s “open-sky” arrangement. Easyjet wants to establish a £10 million European base.

Chief executive Carolyn McCall (pictured) said the figures were “solid” despite a “tough pricing and operating environment”.