Trading Update

RNS Number : 0194A

easyJet PLC

26 March 2012

 



 26 March 2012

easyJet trading update and  pre-close statement
for the six months to 31 March 2012

Outlook for the six month to 31 March 2012	26 January 2012	Revised Outlook
Capacity growth 1	+3%	+3%
Revenue per seat (constant currency) 1	Upper single digits	+10%
Cost per seat ex fuel (constant currency) 1	+3%	+1.5%

¹  Movement compared to six months to 31 March 2011

The strength of easyJet's network, focus on the customer, excellent operational performance, disciplined capital allocation and rigorous cost control combined with exceptionally low levels of disruption has meant that easyJet's financial performance in the first half of the year is expected to exceed the guidance given at the 26 January First Quarter Interim Management Statement.

In a difficult environment for all airlines, improvements in revenue management combined with marketing and website initiatives have enabled easyJet to take advantage as weaker competitors have left the market over the last couple of months. As a result, the increase in total revenue per seat at constant currency for the first half of the year will be better than expected at a little over 10%, with around half of the improvement in total revenue per seat driven by the actions taken last year on ancillary pricing.

Disruption and de-icing costs are £18 million lower than the same period last year as benign weather conditions contributed to an unusually low level of cancelled flights. Additionally, easyJet's continued focus on cost control for the year has delivered a better than expected performance in ground handling and airport charges. Total cost per seat ex fuel for the first half of the year is now expected to be up around 1.5% at constant currency compared to the prior period and full year total cost per seat ex fuel is expected to increase by around 2%, assuming no significant disruption arising from events such as airspace congestion during the Olympics.

As a result, the Board's expectation for a pre-tax loss for the six months ending 31 March 2012 is now between £110 million and £120 million compared with the previous expectation of a pre-tax loss of £140 million to £160 million and a first half loss in 2011 of £153 million. This improved performance compared to last year is despite a £100 million increase in the first half fuel bill.

In line with last year around 30% of second half seats are now booked. The action taken in the first half of last year on ancillary pricing will annualise in the second half of FY 12. At current rates² the second half will also see the impact of additional fuel costs and exchange rate movements of £145 million compared to the prior year. Therefore, despite the stronger than expected first half performance, easyJet's expectations for second half financial performance remain unchanged.

easyJet's current hedging position is set out below:

Percentage of anticipated requirement hedged	Fuel requirement	US Dollar requirement	Euro requirement
Full year ending 30 September 2012	75%	75%	74%
Rate	$960 / tonne	1.59	1.14
Full year ending 30 September 2013	53%	53%	54%
Rate	$983 / tonne	1.60	1.16

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

"Although the economic environment remains weak, easyJet's strategy of affordable fares and our focus on making it easy for our customers ensures that easyJet is well positioned to deliver good results for shareholders.

We continue to expect the environment for airlines to remain difficult. We will continue to deliver for our customers, focus on operational excellence, manage our costs tightly and allocate our capacity to the markets that will deliver the best financial return"

Ends:

Enquiries should be directed to:

easyJet plc

Investors:

Rachel Kentleton                                    [phone]

Tom Oliver                                            [phone]

Media:

Paul Moore                                            [phone]

Edward Simpkins                                    [phone]

2. Jet cif $1103 per metric tonne, US $ to £ sterling 1.59, euro to £ sterling 1.20

 

END

 

 

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