Posted on: 23 July 2015 by Ross McSweeny
Despite facing a difficult operational environment due to increased levels of disruption, easyJet’s revenue per seat only decreased by 2.8% at constant currency (5.4% on a reported basis) to £59.08 per seat for the second quarter of the 2015-2016 financial year (2Q15/16), which is a more positive result than the guidance issued in May predicted.
The better-than-expected revenue per seat was driven by trading in the UK and beach routes across Europe in May and June as well as successful implementation of revenue management initiatives, offsetting in part the impact of the movement of Easter between quarters, and the French air traffic control (ATC) strikes in April.
This disruption, coupled with a fire at Rome Fiumicino airport, caused 1,364 of the 1,463 flights cancelled in the quarter compared with a total of 648 flights cancelled in the same period last year. These events were reflected in the cost per seat excluding fuel performance which increased by 2.8% at constant currency, but decreased by 2.1% on a reported basis.
Furthermore, total revenue for 2Q15/16 decreased by 1% to £1,228 million even though capacity grew by 4.7% to 20.8 million seats in comparison with 2Q14/15. The number of passengers carried increased by 6.2% to 19.1 million and the load factor increased by 1.3 percentage points to 91.7%.
Finally, cash and money market deposits were £930 million and net cash was £421 million at 30 June 2015, demonstrating easyJet’s continued strong balance sheet.
“Our 3Q15/16 performance shows that easyJet’s strategy continues to deliver, in particular with good performance in the UK and beach routes across Europe,” remarked easyJet CEO, Carolyn McCall. “With 77% of second half seats now booked, easyJet expects to grow profit before tax from £581 million for the year to 30 September 2014 to a range of £620 million to £660 million for the year to 30 September 2015. Our Q3 performance means that for the full year easyJet will grow revenue, profits and dividends.”
2Q15/16 also saw easyJet deliver £7 million of sustainable savings – £28 million for the year to date – predominantly through airport and ground handling initiatives.