Sharm el-Sheikh and Paris attacks hit easyJet's revenue

The budget airline said in a trading statement on Tuesday that the tragic events resulted in lower demand and yield in November and December, offsetting strong revenue per seat performance in October.

As a result, revenue per seat was down 3.7% on a constant currency basis.

Total revenue was affected by the events as well as negative foreign exchange movements, down 0.1% to £930m.

The airline has also reduced its cost per seat by 3.7% at constant currency by accelerating its cost improvement plans as well as the benefit of lower fuel costs.

It said profit before tax for the year to 30 September 2016 is in line with market expectations.

EasyJet chief executive Carolyn McCall said the airline’s “excellent customer proposition” combined with low oil prices has allowed it to offer lower fares, driving an 8% increase in passenger numbers in the first quarter.

"The easyJet customer-centric strategy of giving passengers low fares to primary airports continues to be executed well,” she said.

“This year we will consolidate that with a relentless focus on cost reduction which is already delivering. This will ensure that easyJet continues to win and continues to grow revenue, profit and dividends."

Nomura said the events in France and Egypt had a bigger impact than expected.

“[However] these are relatively exceptional and short-term issues, while the more controllable and longer-term issue of cost efficiencies is better than we had envisaged.”

The investment firm said it retained its ‘buy’ rating with an unchanged target price of 2,100p target.

“Assuming no deterioration in the scale and frequency of global terror activity, we remain Buyers of easyJet.”