Record profits once more for easyJet in FY2014

easyJet has announced its results for fiscal year 2014 which ended on 30 September 2014, featuring a 21.5% increase in profit before tax (PBT) to £581 million from FY2013’s PBT of 478 million.Total revenue rose to £ 4,527 million, up 6.3% from last year’s 4,258 million. The pre-tax margin in FY2014 was 12.8%, compared with 11.2% in FY2013, an increase of 1.6 percentage points.Total revenue per seat increased by 1.2% on a reported basis, and by 1.9% on a constant currency basis to £63.31. The airline said the growth in revenue per seat was driven in part by a number of digital and revenue management initiatives and a continued focus on capital allocation.The average load factor increased by 1.3 percentage points to 90.6% and passenger numbers rose by 6.6% to 64.8 million.On the expenditure side, cost per seat excluding fuel decreased by 1.2% on a reported basis but increased by 0.6% on a constant currency basis to £37.70, driven by increases in charges at regulated airports but offset by easyJet lean initiatives.easyJet noted that it achieved lean delivered sustainable savings of £32 million in the year of which £18 million were delivered in the second half. This aided a 3.1 pp increase in the return on capital employed (ROCE) to 20.5%.easyJet closed the financial year with £985 million of cash and money market deposits, a decrease of £252 million against the position at 30 September 2013. This reflects the continued cash generation of the business offset by the payment of a £133 million ordinary dividend and a special dividend of £175 million to shareholders in the year, pre-delivery payments for new aircraft and repayment of borrowings, the company stated.“easyJet has continued to execute its strategy, delivering another strong performance and enabling easyJet to deliver record profits for the fourth year in a row,” declared easyJet chief executive, Carolyn McCall. “We are also proposing to increase the proportion of our profits after tax paid in dividends from one third to 40%, reflecting our confidence in the future of easyJet.“Our performance demonstrates our continued focus on cost and progress against every strategic revenue priority. Our people are fully aligned behind our strategy and this gives us strong momentum to continue delivering.“easyJet has opened up clear blue sky between us and our competitors – both legacy and low cost – with our unique and winning combination of the best route network connecting Europe’s primary airports, with great value fares and friendly service. I would like to thank all of our people who have worked so hard to deliver sustainable growth and returns for our shareholders," McCall concluded.

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