Easyjet warns of £90m currency hit

Easyjet has warned that the weakened pound will cost it £90m in its current financial year.

That is more than double its original estimate made in July, when it warned of a £40m hit, BBC News reports.

Jet fuel is priced in dollars, so the falling pound has made it more expensive for Easyjet to run its aircraft.

Easyjet expects a profit of between $490m and £495m for its financial year, which ends on 30 September.

That would be down 28% on the £686m annual profit it made in 2015.

"The current environment is tough for all airlines, but history shows that at times like this, the strongest airlines become stronger," said Carolyn McCall, Easyjet chief executive.

Easyjet flew a record 22 million passengers in the three months to 30 September, and those passengers have been enjoying lower ticket prices.

Easyjet expects revenue per seat to be down 8.7% for the year and expects ticket prices to fall further in the coming months.

Terror attacks in Europe, Turkey and Tunisia have also affected sales.

"We have been disproportionately affected by extraordinary events," said Ms McCall.