easyJet revises 2H14 profit upwards

easyJet has revised upwards its expected pre-tax profit for the second half of its financial year (2H14) which ended on 30 September 2014.

In its interim management statement in July, the airline forecast a 2H14 pre-tax profit between £545 million to £570 million, but has revised that figure to between £575 million to £580 million.

2H14 revenue per seat (at constant currency is now expected to be 2% up on 2H13, revised up 1% since July.

Cost per seat excluding fuel at constant currency for the six months to 30 September is expected to increase by around 0.7%, driven by “the continued delivery of easyJet lean initiatives offset by increases in regulated airport charges, navigation and the costs associated with the increased load factor in the period”.

easyJet’s unit fuel cost in the six months to 30 September 2014 is expected to be 2 million better than in the six months to 30 September 2013; and that the impact of exchange rate movements (including those related to fuel) will be around £15 million favourable, compared with the six months to 30 September 2013.

The impact of the Air France pilots’ strike in September is expected to increase easyJet’s revenue by around £5 million as Air France passengers switched to easyJet.

easyJet will publish its full year results on 18 November 2014 when it will provide further details on its performance in the twelve months to 30 September 2014.

Commenting on the pre-close statement, Carolyn McCall, easyJet’s chief executive remarked, “easyJet has continued to execute its strategy, delivering another strong performance in the second half of the year. This has enabled easyJet to deliver record profits for the fourth year in a row. This will also lead to our largest ever ordinary dividend payment as we are also proposing to increase the proportion of our profits after tax paid in dividends from 33% to 40%.

“We finished the year strongly. Our performance demonstrates our continued focus on cost and progress against all our strategic revenue priorities and further emphasises easyJet's structural advantage against both legacy and low-cost competition,” added McCall.

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