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A Record Performance for easyJet plc in First Half Results

easyJet plc LON:EZJ this morning announced its results for the 6 months ended 31 march 2015 bringing them back to profit for the first time in over 10 years. Pre-tax profits for the first half up to 31st March were £7 million compared to the previous year’s loss of £53 million. It was expected that earnings would range between a loss of £5 million and a profit of £10 million.

 

 

  

2015

2014

     Change

Total revenue (£ million)

1,767

1,702

3.8

%

Profit / (loss) before tax (£ million)

7

(53)

112.9

%

Pre-tax margin (%)

0.4

(3.1)

+3.5

ppt

Basic earnings / (loss) per share (pence)

1.3

(10.4)

+11.7

pence

 

Key points:

  • Total revenue per seat increased by 2.6% year-on-year on a constant currency basis, and by 0.2% per seat on a reported basis, to £54.91 driven, in part, by the disciplined allocation of capacity, improvement in load factor, strong October trading, timing of Easter and performance of allocated seating.
  • Average load factors increased by 0.7 percentage points to 89.7% whilst capacity grew by 3.6% to 32.2 million seats.
  • Cost per seat excluding fuel grew by 2.9% on a constant currency basis and decreased by 1.4% on a reported basis to £38.66. The increase in cost per seat was driven by anticipated increases in charges at regulated airports mainly in Germany and Italy, increased disruption costs in the second quarter and costs associated with building a resilient operation ahead of new crew base openings.
  • easyJet lean delivered £21 million of sustainable savings in the six months to 31 March 2015.
  • From May 2016 all future deliveries of A320 aircraft to have 186 seats; existing A320 180 seat fleet to be retrofitted starting in winter 2016. 186 seat A320 expected to deliver a cost per seat saving of 2% vs. a 180 seat A320.
  • Component support contract signed with AJW Group to drive savings in maintenance costs from October 2015.
  • easyJet opened new bases in Amsterdam and Porto bringing the total number of bases to 26.
  • In the six months to 31 March 2015, easyJet returned £180 million or 45.4 pence per share to shareholders through the payment of an ordinary dividend at an increased payout ratio of 40% of profit after tax for the year ended 30 September 2014.
  • easyJet ended the first half of the financial year with cash and money market deposits of £976 million, a decrease of £93 million against last year. Net cash as at 31 March 2015 was £416 million compared to £449 million at 31 March 2014.

 

easyJet plc LON:EZJ Chief Executive, Carolyn McCall said: “easyJet has delivered a record performance in the first half of the year by continuing to deliver its strategy of making travel easy and affordable for passengers. The profit in the half reflects the delivery of our customer focused revenue initiatives and a strong finish to the ski season as well as the benefit we received from the lower fuel price and favourable foreign exchange movements. As we enter the important summer season forward bookings are in line with last year and as we predicted passengers are benefitting as fares fall to reflect a more competitive operating environment and lower fuel costs. easyJet continues to be well positioned to grow revenue and profit this year, delivering sustainable returns to shareholders due to its compelling network, low cost base and strong balance sheet.”

 

easyJet plc is a United Kingdom-based airline carrier with its operation primarily in Europe. The Company operates approximately 600 routes across 30 countries. The Company has a fleet of approximately 200 Airbus aircraft. The Company has operations in London Gatwick, London Luton, London Southend, Bristol, Edinburgh, Milan Malpensa, Naples, Venice, Nice, Basel and Geneva, London Stansted, Paris Orly, Paris Charles De Gaulle, Lisbon, Lyon, and Rome Fiumicino. It also offers flights and travel info through Flight Tracker; booking of accommodations, including hotels, apartments, resorts and villas, among others; booking of transport, including car rentals, taxis and shuttle services, and holiday bookings, which include beach holidays, city breaks and ski holidays. The Company offers airlines to Amsterdam, Barcelona, Berlin, Copenhagen, Hamberg and Mandrid, among others.

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