easyJet Trading Update and Pre-Close Statement

RNS Number : 4845I

easyJet PLC

26 March 2015

 

26 March 2015

easyJet trading update and pre-close statement
for the six months to 31 March 2015

	Outlook as at  27 January  2015 trading statement	Revised outlook
First half capacity growth1	c. +3.5%	c. +3.7%
Full year capacity growth2	c. +5.0%	c. +5.0%
First half revenue per seat (constant currency)1	c. +2.0%	c. +2.5%
First half cost per seat ex fuel (constant currency)1, 3	c. +2.5%	up to +3.0%
Full year cost per seat ex fuel (constant currency) 2, 3	c. +2.0%	up to +2.5%
First half foreign exchange impact1	Favourable £10 million	Favourable £20 million5
Full year foreign exchange impact2	Adverse £20 million	Adverse £20 million5
First half unit fuel bill1 ,4	Favourable £30 million to £35 million6	Favourable £35 million
Full year unit fuel bill2, 4	Favourable £90 million to £130 million6	Favourable £90 million to £120 million6
First half result before tax	Loss of £10 million to £30 million	Loss of £5 million to a profit of £10 million

easyJet expects to deliver a first half performance ahead of the guidance given in the 27 January 2015 trading statement primarily due to the movement of exchange rates in the second quarter.

·      Revenue per seat growth at constant currency for the six months to 31 March 2015 is now expected to be around 2.5%¹;

·      Cost per seat at constant currency for the six months to 31 March 2015 is now expected to increase by up to 3.0%,^{1, 3} due to higher levels of de-icing and disruption costs in the second quarter;

·      As a result cost per seat at constant currency for the full year is now expected to increase by up to 2.5%^{2, 3};

·      Based on a Euro : Sterling exchange rate of 1.3574 and a US Dollar : Sterling exchange rate of 1.4917 it is now expected that exchange rate movements are likely to have around a £20 million favourable impact in the six months to 31 March 2015¹ primarily due to the recent weakening of the Euro against Sterling;

·      Using the same exchange rates, the first half favourable impact will reverse in the second half and it is expected that exchange rate movements are likely to have around a £40 million adverse impact in the second half.  This will result in a £20 million adverse impact for the 12 months to 30 September 2015²;

·      It is expected that easyJet's unit fuel bill for the six months to 31 March 2015¹ will be around £35 million favourable and for the 12 months to 30 September 2015² it is estimated that easyJet's unit fuel bill⁴ is likely to be between £90 million and £120 million⁶ favourable.

The Board's expectation is now for a pre-tax result for the six months ended 31 March 2015 of between a loss of £5 million and profit of £10 million compared with the previous guidance of a pre-tax loss of £10 million to £30 million and a prior year pre-tax loss of £53 million.  easyJet has had a good first half of the year and second half bookings are in line with last year.  However, further volatility around currency rates and the oil price is likely to continue into the second half.

Commenting on the pre-close statement, Carolyn McCall, easyJet's Chief Executive said:

"easyJet has performed well in the first half of the year and has continued to deliver its strategy of making travel easy and affordable for passengers.  We continue to expect that lower fuel costs will be beneficial for our customers as fares adjust.  easyJet continues to be well positioned to deliver sustainable returns to shareholders due to its compelling network, low cost base and strong balance sheet."

easyJet will provide further details on its performance in the six months to 31 March 2015 when it publishes its half year results on 12 May 2015.

Enquiries should be directed to:

easyJet plc

Investors:

Will MacLaren                                        [phone]

Media:

Paul Moore                                            [phone]

Edward Simpkins, Finsbury                      [phone]

Fuel and foreign exchange hedging

Percentage of anticipated requirement hedged	Fuel requirement	US dollar requirement	Euro surplus	Swiss franc surplus
Six months to 30 September 2015	82%	83%	81%	93%
Average rate	$908 / metric tonne	$1.58	€1.18	CHF1.47
Full year ending 30 September 2015	86%	84%	85%	99%
Average rate	$929 / metric tonne	$1.59	€1.18	CHF1.47
Full year ending 30 September 2016 Average rate	71% $869 / metric tonne	70% $1.64	64% €1.22	57% CHF1.46

¹ Movement compared to six months to 31 March 2014.

² Movement compared to 12 months to 30 September 2014.

³ This does not include an additional navigation charge from Eurocontrol which easyJet is currently disputing.

⁴ Unit fuel calculated as the difference between latest estimate of FY'15 fuel costs less FY'14 fuel cost per seat multiplied by FY'15 seat capacity.

⁵ Spot rates at 25 March 2015: US $ to £ sterling 1.4917, euro to £ sterling 1.3574.

⁶ Based on jet fuel remaining within a $550 metric tonne to $750 metric tonne trading range.

 

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