EasyJet has now warned other airlines that a tough winter is ahead of them. This announcement came after the airline showed that it had a 65 percent slump in annual pretax profits. The carrier, which is based in Luton, has cited its fall in profits is due to the deep fall in demand from increased unemployment rates. Many people are not traveling right now in order to save money.

Of course, the unemployment rate is not the only thing causing problems for EasyJet. The carrier is also having problems with its very poorly timed fuel hedging. EasyJet is a company which buys about two thirds of its fuel through fuel hedging. The company ended up paying $951 per metric tonne of jet fuel when the market price was just $595. Fuel costs subsequently soared up by £98.5 million.

However, the company says that it’s resilient sales are what have kept them alive. Revenues have rose 12.9 percent to £2.6 billion. The company says that they view themselves as being extremely resilient in the tough trading conditions.

The company was able to fly 45.2 million passengers just last year. The carrier was able to buck the trend of falling passenger numbers across the global industry by capitalizing on weak competitors in markets such as Spain and Italy.

The airline also said that it will be expanding by 7.5 percent annually until 2015. This came just after a very publicized boardroom spat, which was sparked by the founder of the company and his concerns over the expansion. Either way, EasyJet has a very rough road ahead of them.