News Column

easyJet Third Quarter Revenues Fly On Easter Timing

July 24, 2014

Alice Attwood

LONDON (Alliance News) - easyJet PLC said Thursday that revenue, passenger numbers and load factor increased in the third quarter as the low-cost airline benefited from the timing of Easter as well as good progress in its digital, brand and revenue initiatives.

The FTSE 100-listed airline said total revenue for the third quarter to June 30, 2014 rose 8.6% to GBP1.24 billion from GBP1.14 billion last year.

easyJet said its positive revenue performance was driven by the movement of Easter into the third quarter of the financial year, as well as its continued digital, brand and revenue initiatives.

Passenger numbers in the period rose 9.4% to 17.9 million from 16.4 million in the comparable quarter in 2013 while load factor was up 2.2% to 90.4%, compared to the 88.2% reported last year. Seats flow rose 6.8% to 19.8 million from 18.6 million.

Revenue per seat grew by 2.7% at constant currency or by 1.7% on a reported basis to GBP62.47 per seat from GBP61.44 in the third quarter last year, despite a less benign capacity environment and a significant increase in easyJet capacity at Gatwick.

Cost per seat, excluding fuel, increased by 1.0% at constant currency or decreased by 1.3% on a reported basis, said the airline, better than guidance issued in May. The increase, at constant currency, was driven by increased airport charges, primarily in Italy and planned year-on-year cost increases in maintenance and lease costs, said the company.

The airline also increased its capacity during the period, upping it by 6.8%, primarily driven by a 16% increase in capacity at Gatwick mainly due to the purchase of the Flybe slots and 7% growth at Rome Fiumicino, said easyJet.

"We will continue to invest in building leading network positions and this combined with a compelling customer proposition, low cost base and strong balance sheet leaves easyJet well positioned to continue to deliver sustainable growth and returns," said CEO Carolyn McCall.

The company remains confident when looking ahead; 77% of second-half seats have now been booked and easyJet expects its pretax profit to grow from GBP478 million for the year to September 30, 2013 to a range of between GBP545 million and GBP570 million for the year to September 30, 2014 assuming no further significant disruption. These expectations include the impact from the situations in Israel, Egypt and Moscow, said McCall.

Shares in easyJet were Thursday trading 4.13% lower at 1,345 pence per share Thursday morning, the second biggest faller on the FTSE 100.

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Source: Alliance News

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