Easyjet revenue affected by Paris and Egypt terrorist attacks

Revenue per seat declined 3 per cent because of cancelled flights to Sharm El-Sheikh

An Airbus in British airline EasyJet livery (Getty)

Easyjet has said its revenue per seat in November and December took suffered a sharp drop following terrorist attacks in Paris and Egypt.

Revenue per seat declined 3 per cent because of cancelled flights to Sharm El-Sheikh and a drop in demand following the terrorist attacks in Paris.

Easyjet said cancellations were up almost 50 per cent in the first quarter of 2016 compared to the year before, with flights to Sharm El-Sheikh making up the biggest proportion of these.

Carolyn McCall, easyJet Chief Executive, said that low oil prices had translated to lower fares, "which has driven an 8 per cent increase in passenger numbers in the first quarter".

The company said all affected passengers who were in Egypt at the time were now home and that they have suspended all flights to Sharm El-Sheikh until May 27, 2016.

Despite a lowers revenue per seat, low oil prices boosted Easyjet results. Its fuel bill for the first half of the financial year is expected to decrease by £75 million and £85 million.

Low oil prices mean Easyjet will continue to increase capacity to meet its profit expectations in 2016.

Ryanair has warned of a price war in Europe as low oil prices encourage airlines to raise capacity and compete against each other, but that has yet to materialise.