Low-cost carrier easyJet reported a 3.8% increase in year-on-year revenue for the first half of its financial year ended March 2015, driven by a 2.6% y-o-y rise in revenue per seat due to “disciplined allocation of capacity, improvement in load factor, strong October trading, timing of Easter and performance of allocated seating.”
Total revenue rose from GBP 1.702 bln to 1.767 bln, resulting a pre-tax profit of GBP 7 mln, a turnaround from the 53 mln loss in the same period last year.
Basic earnings per share (EPS) were thus at 1.3p from a loss of 10.4p last year.
Average load factors increased by 0.7 percentage points to 89.7% whilst capacity grew by 3.6% to 32.2 mln seats.
Cost per seat excluding fuel grew by 2.9% on 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.
From May 2016 all future deliveries of Airbus A320 aircraft will have 186 seats. The existing A320 180-eat fleet will be retrofitted starting in winter 2016, while the 186-seat A320s are expected to deliver a cost per seat saving of 2%.
In the six months to March 31, easyJet returned GBP 180 mln or 45.4p 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 September 30, 2014.
“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,” said CEO Carolyn McCall.
“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.”
