easyJet Interim Management Statement for the quarter ended 30 June 2014

easyJet has reported its performance in the quarter ended 30 June 2014, the third quarter of the company’s financial year.

Total revenue grew by 8.6% to £1,240 million, passengers carried increased by 9.4% to 17.9 million, and the load factor increased by 2.2 percentage points to 90.4%.

Revenue per seat grew by 2.7% at constant currency or by 1.7% on a reported basis to £62.47 per seat despite a less benign capacity environment and a significant increase in easyJet capacity at Gatwick. The revenue performance was driven by the movement of Easter into the third quarter of the financial year and continued digital, brand and revenue initiatives.

easyJet’s capacity grew 6.8% in the quarter, 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.

Cost per seat excluding fuel increased by 1.0% at constant currency or decreased by 1.3% on a reported basis, 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.

Cash and money market deposits were £1,162 million and net cash was £603 million as at 30 June 2014 demonstrating easyJet’s continued strong balance sheet.

Assessing the results, Carolyn McCall, easyJet chief executive commented, “easyJet has again delivered a solid performance in the quarter carrying 17.9 million passengers and growing revenue by 8.6% to £1,240 million.

“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.

“With 77% of second half seats now booked, easyJet expects to grow profit before tax from £478 million for the year to 30 September 2013 to a range of £545 million to £570 million for the year to 30 September 2014 assuming no further significant disruption. This range includes the impact from the situations in Israel, Egypt and Moscow,” McCall concluded.

On-time performance in the quarter was impacted by a number of strikes across the network, including a two day French ATC strike in June. easyJet continues to manage disruption well with strong operational processes and proactive communication with customers.

During 2Q14, easyJet took delivery of two Airbus A320s. As at 30 June 2014, the fleet comprised 222 aircraft; with 69 A320s and 153 A319s. Aircraft utilisation improved in the quarter with the average utilisation for operated aircraft increasing by 1.8% to 12.2 hours per day.

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