EasyJet has announced it will file a legal challenge with the European Commission over strikes by French air traffic controllers, which have caused thousands of flight cancellations. The industrial action has cost the airline £25 million and resulted in more than 2,600 flights being cancelled in the three months to 30 June.
Chief executive Johan Lundgren argued that EU law was being breached by failing to protect flights over France, and that a failure to take action was infringing citizens' freedom of movement. EasyJet's move follows a similar complaint by Ryanair and IAG, the owner of British Airways, who jointly took action against the Commission over its lack of response to the strikes.
The airline said costs for the full year would rise by about 3% due to the disruption, which has already been greater than during the whole of 2017. Lundgren noted that the situation will not go away, describing it as a challenging year so far. EasyJet also warned that the hot weather in the UK and the World Cup could affect demand for late bookings in the three months to 30 September.
Despite the strikes, EasyJet raised its full-year profit outlook to between £550 million and £590 million, up from a previous estimate of £530 million to £580 million, due to strong demand. Revenue for the third quarter rose 14% to £1.6 billion, with ancillary revenues from baggage and seat allocation up more than a fifth to £328 million. The airline flew 24.4 million passengers, a 9.3% increase year-on-year.
Shares in EasyJet rose almost 3% to £17 in morning trading in London. Analysts commented that the higher profit guidance should increase the dividend for shareholders, but warned that costs need to be tightly controlled. Losses at Berlin Tegel airport, where EasyJet expanded after buying parts of Air Berlin, are expected to rise to £125 million this year, £30 million higher than previously estimated.
