EasyJet News Update: UK Weather Affecting Sales
EasyJet News Update
EasyJet News Update: Due to the recent and unexpected heatwave within the UK, less people have been flying with the airline resulting in a loss of revenue.
Over the past two months the United Kingdom has been experiencing a heat wave with temperatures reaching over thirty-two degrees celsius in many areas and claims that at times, the United Kingdom was hotter than the Mediterranean. For this reason, many families and individuals have been enjoying the hot weather at home and not felt the need to jet off else where in the search for some sun.
This however, was bad news for airline company, EasyJet who usually rely on people booking last minute deals at this time of year, due to the usually bad UK weather. This was unfortunate timing for the company as it was just before their financial third-quarter update; It resulted in their share prices decreasing. It also doesn’t look bright for EasyJet’s immediate future as the predicted heat will flatten the demand for beach flight destinations. Consequently, this will then affect EasyJet’s financial forth quarter, but the extent of the affect depends how EasyJet maximise their revenue.
At the moment, due to the low demand, EasyJet have reduced some of the prices of their flights in order to entice people to travel if they believe they are getting a good deal. Many beach destination routes are now one hundred pounds or less.
However, although the company may be experiencing a spout of low demand, the beginning of the financial year has proven to include strong sales and considerable profits. This year the company are predicted to receive a profit of up to four-hundred and eight million pounds. But in spite of this, HSBC have altered their rating on EasyJet from overweight to neutral.
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It has also been announced that the company’s director, Paul Simmons, is to leave the airline company after seven years working for EasyJet. It is said that he will be moving to another travel firm. Many are questioning his decision to leave and the ability the company now have to cope, especially at a time of uncontrollable low demand.
If the budget airline company maximise their resources as well as their revenue efficiently and productively then they will hopefully not let the summer’s low demand affect the company’s financial outlook.
If you want to know more information about EasyJet or have an issue that you would like to have sorted, then you can ring their customer services helpline. Alternatively, you can visit the EasyJet official website by clicking here.
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