Easyjet warns ETS to erode 2012 profits, India rebels

London: Low-cost European airline Easyjet on Thursday warned investors that its full-year 2012 profits will be hit by carbon permit costs as the aviation sector is forced to join the EU's emissions trading scheme from January.
The operator raised its pre-tax profit view for financial 2011, which ends on September 30, to 240-250 million pounds from 200-230 million pounds, but said higher fuel prices, unfavourable exchange rates, increasing airport fees and the cost of EU carbon permits will affect the firm's 2012 bottom line.
The airline sector is scheduled to join the EU ETS from January 1, when around 4,000 operators will face emission limits for any flights into or out of the 27-nation bloc.
But the plan has come under fire from foreign carriers backed by governments including the U.S., Canada, China, Russia and India.
India will next week host a meeting in Delhi of more than a dozen nations opposed to the scheme, and will issue a joint declaration against it, Indian news website Livemint.com reported on Thursday.
22/09/11 Reuters.com

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Categories: Foreign Sep 2011, Indian Aviation- In General Sep 2011