The global news cycle has not been kind to Carolyn McCall, CEO of EasyJet. Terrorist attacks in Paris, Brussels and Nice–plus the shock of Brexit and the state of emergency in Turkey after a failed coup–have conspired to create the toughest time in recent memory for the budget airline chief.
“There are so many moving parts,” McCall (No. 7 on Fortune‘s list of the Most Powerful Women, EMEA) said yesterday, in announcing third-quarter results. “There are more terrorist events than in any years anyone can remember, air traffic control action, and the devaluation of the pound on top of that.”
EasyJet was the biggest decliner on the FTSE 100 yesterday morning, with shares falling 6%. McCall says the airline’s costs have risen by 40 million pounds since the Brexit decision because a rise in the dollar has boosted the price of fuel. Cancellations have been rising as well: up 70% from where they were the same period last year.
There is a silver lining–for customers like you and me. As McCall told the BBC, “It actually means it’s cheaper to fly and ticket prices are low.”
British airlines were already vulnerable to the aftermath of Brexit, since it calls into question their participation in Europe’s open market that has bolstered the industry. But all the uncertainty surrounding other world events has only made things worse. In fact, the future is so incalculable, McCall said the airline “can’t be precise about guidance.” No wonder.
Laura Cohn