London – EasyJet’s annual profit fell for the first time since 2009 as a spate of terror attacks clipped demand and the decline of the pound following Britain’s vote to quit the European Union inflated foreign-currency costs.

Pretax profit for the 12 months ended September 30 is expected to have been in the range of 490 million pounds to 495 million pounds ($623 million-$630 million), Luton, England-based EasyJet said in a trading update on Thursday. That’s below the 516 million-pound figure based on analyst estimates compiled by Bloomberg. It’s also about 28 percent lower than 2015’s earnings. The stock tumbled to its lowest level in more than three years.

EasyJet ceased providing full-year guidance after the June 23 Brexit decision, after initially saying earnings would match a consensus analyst estimate of 738 million pounds. While the impact of the vote on demand remains tough to gauge, sterling’s slide has bloated the fuel bill, paid in dollars, as well as EasyJet’s euro-denominated costs. The stock has lost 35 percent since the referendum.

“We have been disproportionately affected by extraordinary events this year but our excellent network, cost control and revenue initiatives and our strong balance sheet underpin our confidence in the business,” Chief Executive Officer Carolyn McCall said in the release.

EasyJet shares dropped to as low as 913.5 pence, the lowest level since January 2013, and were down 6.2 percent at 941 pence at 8.12am in London, dropping the company’s value to 3.75 billion pounds.


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