Summer of set-backs costs easyJet £5m

Easyjet, the low-cost airline planning to float in November, has lost £5m over the summer due to bad weather, strikes and other "problems beyond our control".

Easyjet, the low-cost airline planning to float in November, has lost £5m over the summer due to bad weather, strikes and other "problems beyond our control".

The group, founded by Stelios Haji-Ioannou, has been hit by everything from freak snow storms in Luton to blanket fog and the inevitable French air traffic-control strike. Its losses have been exacerbated by a policy of refunding passengers if their flights are delayed by four hours or more. However, it has garnered some criticisms from rivals for not honouring this policy when flights were cancelled because of computer problems at the National Air Traffic Control Centre at West Drayton.

Go, owned by British Airways, has accused easyJet of reneging on its policy in order to boost its profits ahead of the float. But Toby Nichol, easyJet's corporate communications director, says that its stated policy is that, if the "cause and effect are totally beyond our control", then it will not pay compensation. When the air traffic-control computers failed, all flights in the south of England were grounded, giving easyJet no chance to make alternative arrangements.

"At the time we said we could not give the money back as we could not fly," said Ray Webster, easyJet's managing director.

Mr Webster has taken over the running of easyJet from Mr Haji-Ioannou as the group has revamped its management structure ahead of the float in November. The founder has become the non-executive chair- man and is concentrating on other ventures, which include the easyEverything internet cafés and his car rental business.

The airline's board will have five executive and five non-executive directors when it floats. Mr Webster said the plan was to list in November, but much depends on market conditions. "We must keep our options open," he said. "If we don't think we will be able to get value we will hold back until the right time."