easyJet expects half-year results better than guidance

easyJet says it expects to deliver a first half performance ahead of the guidance given in the 23 January 2014 Interim Management Statement.

Revenue per seat growth at constant currency for the six months to 31 March 2014 is expected to be around 1.5%, driven, in part, by allocated seating, increased average sector length and a number of digital and revenue management initiatives. As previously noted, last year Easter fell on 31 March resulting in £25 million of additional revenue in the first half of the airline’s FY2013 (which ran from 1 October 2013 to 30 September 2013). In this financial year Easter will fall in the second half on 20 April.

Cost per seat growth excluding fuel at constant currency is expected to be approximately 0.5% which is better than the guidance issued on 23 January 2014, driven by a benign winter with reduced levels of de-icing and disruption in the three months to 31 March 2014. It also reflects the early delivery of a number of easyJet lean initiatives.

easyJet’s board’s expectation is for a pre-tax loss for the six months ended 31 March 2014 of between £55 million and £65 million compared with the previous guidance of a pre-tax loss of £70 million to £90 million.

Carolyn McCall, easyJet’s chief executive commented, “easyJet has continued to execute its strategy delivering another good performance in the first half of the year. This performance demonstrates our continued focus on cost and progress against all our strategic priorities. It also demonstrates easyJet’s structural advantage in the European short-haul market against both the legacy and low-cost competition.

“Our strategy of offering our customers low fares to great destinations with friendly service and a focus on cost control ensures that we can continue to deliver sustainable growth and returns for our shareholders.”

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