EasyJet shares fall after Turkey shoots down Russian jetComments Off on EasyJet shares fall after Turkey shoots down Russian jet
Shares in easyJet sank as the shooting down of a Russian warplane over Turkey and the cancellation of the budget airline’s flights to Egypt’s Sharm el-Sheikh sent jitters through the City.
Easyjet shares fell 3.5% to 1589p as the jet plummeted to the Turkey-Syria border and the market digested further worries over travelling to Europe following the terrorist attacks in Paris.
Shares in rivals IAG and Ryanair also retreated.
EasyJet, led by Carolyn McCall, also said all flights between Sharm el-Sheikh and the UK have been cancelled until January 6.
The news came as John Menzies, the baggage-handling and distribution business, today issued a profit warning after revealing difficulties at Gatwick with easyJet.
The company’s shares fell 4% to 366.39p after it revealed it would miss annual profit forecasts by £2 million as it had to make £6 million investment to deliver an unnamed customers’ operational requirements.
The Standard understands easyJet’s bumper summer caused the firm to supply more manpower for baggage handling and loading.
The problem is expected to be resolved by the end of the year.