EasyJet faces £200m in losses following terror attacks and the plunging value of the pound

Low-cost airline easyJet has said it will take a financial hit of more than £200 million due to a series of "extraordinary events", including the plunging value of the pound and terrorist attacks.

The carrier said it faces at least £125 million in lost profits following a wave of terror attacks across Europe, Egypt and Tunisia; political turmoil in Turkey; and air traffic control strikes in France.

The falling value of the pound following the Brexit vote would also lead to £90 million in losses, easyJet added.

The group said it was expecting profits for the year to September 30 to fall by nearly a third, to between £490 million and £495 million.

EasyJet has cut the prices of fares by around 9% year-on-year to boost demand, as it fought a price war with rival budget airline Ryanair.

EasyJet CEO Carolyn McCall said the carrier will continue to invest in the company. Credit: PA Wire

The carrier warned that the falling value of the pound will continue to impact the group into 2017 because it will make fuel more expensive to buy in US dollars.

Carolyn McCall, chief executive of easyJet, said: "We have been disproportionately affected by extraordinary events this year.

"The current environment is tough for all airlines, but history shows that at times like this, the strongest airlines become stronger. That is why we will continue to invest for the long-term success of the business."

EasyJet's announcement comes amid fears about the financial health of Monarch Airlines, which was recently granted an extension to fly its package holidays for a further 12 days after securing further investment.