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EasyJet ‘well positioned’ after positive Q4 2013 results

Passengers flown by easyJet rose by 4.2% to 14.3 million in the three months to the end of December.

The budget carrier’s load factor increased by 0.1 percentage points to 88.7%.

Revenue per seat grew as expected by 3.4% to £55.71 despite strong prior year comparators from post-Olympic trading in the UK and a challenging competitive environment, the airline said today.

This growth was driven by careful management of capacity, combined with the performance of allocated seating and the management of fees and charges.

Revenue per seat was also helped by longer average sector lengths in the quarter.

Looking forward, the airline said there have been no significant changes to capacity plans for the year at 5% growth for the full 12-month period.

EasyJet expects its first half loss before tax to be in the range of £70 million to £90 million “assuming normal levels of disruption,” compared to the £61 million loss reported in the first half of last year.

Last year Easter fell on March 31, resulting in £25 million additional revenue in the first half of 2013. In this financial year Easter will fall in April.

“With around 15% of second half seats sold year to date, in line with this time last year, it is still too early to give guidance on second-half yields or expected profits,” the airline said.

A strong customer focus and tight cost control ensures that easyJet is well positioned to deliver sustainable growth and returns for shareholders, it added.

“With first half bookings in line with last year, easyJet still expects first half revenue per seat at constant currency to be very slightly up on the prior year after adjusting for a 1.5 percentage point adverse impact from the timing of Easter which falls in the second half of the financial year,” the airline said.

Chief executive Carolyn McCall said: “EasyJet has made a good start to the year. We have delivered revenue per seat growth in the quarter against a challenging competitive environment and the tough comparison with the prior year.

“The performance in the quarter demonstrates our continued focus on cost, progress against our strategic priorities and easyJet’s structural advantage in the European short-haul market against both the legacy and low-cost competition.

“Our strategy of offering our customers low fares to great destinations with friendly service and a focus on cost control ensures that we can continue to deliver sustainable growth and returns for our shareholders.”

A new base in Naples which will be operational from the spring together with new routes from Hamburg and Rome Fiumicino airport.

EasyJet is also looking to connect more points on its network such as an increase in the number of routes to Tel Aviv, including Gatwick and Milan.

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