EasyJet's shares hit hard on warning loss could double | Business | guardian.co.uk: "Rising fuel prices and airline passengers' apparent frustration with baggage check-in fees hammered easyJet's shares this morning as the budget carrier warned that first-half losses could double.
EasyJet stock tumbled 12% to 400p after it warned of weak sales due to poor takings from add-on charges, fragile demand in continental Europe and higher-than-expected losses from snow disruption and air traffic control strikes. Announcing a £31m loss from the December freeze and union walkouts in France and Spain, easyJet said first-half losses in the six months to March would range from £140m to £160m, compared with £78.7m for the previous year.
However, airlines traditionally struggle to make money over the winter and it was the comments on revenues, both in terms of demand and add-on fees, that shocked market watchers. EasyJet's chief executive, Carolyn McCall, formerly head of the Guardian group, said the airline's trading performance was 'solid'. Nonetheless, analysts said the earnings statement clearly unsettled some investors."
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