easyJet reports Q3 performance

Eleanor Steed
By Eleanor Steed July 20, 2017 11:27

easyJet reports Q3 performance

easyJet carried 10.8% more passengers during the third quarter of 2017 to 22.3 million, driven by an increase in capacity of 9.5% to 24.0 million seats and load factor increasing by 1.1 percentage points to 93.1%.

Total revenue per seat increased by 2.2% at constant currency, ahead of guidance and increased by 5.9% on a reported basis to £57.78 per seat. Total revenue in the quarter increased by 16.0% to £1,387 million, with a significant benefit from the move of Easter to April, higher load factors, as well as an improving underlying trend in the trading environment. Ongoing enhancements to our customer proposition and other revenue initiatives helped to stimulate bookings and build revenue momentum throughout the period.

easyJet delivered strong cost control as headline cost per seat including fuel improved by 5.5% at constant currency, due to low fuel prices and a strong underlying cost focus. As anticipated easyJet’s headline cost per seat excluding fuel at constant currency was up 1.6% in the quarter reflecting planned investment in the resilience of the operation and the additional load.

Headline profit before tax guidance for FY2017 expected in the range of £380 million to £420 million.

Commenting; Carolyn McCall, easyJet Chief Executive said: “easyJet has delivered a strong performance in the quarter right across the business. Our purposeful and disciplined growth continues to strengthen our market positions and we are seeing an underlying improving revenue trend.  Our continuing product and digital innovation is generating revenue growth. Our underlying cost control is strong, while our investment in resilience is delivering results in our operational performance… Although we expect capacity to continue to put pressure on yields, our progress this year has enabled us to upgrade this year’s PBT forecast and demonstrates that after a difficult 18 months of external challenges easyJet once again has positive momentum.”

Approximately 67% of expected bookings for the fourth quarter have now been secured, says easyJet. Based on this, revenue per seat at constant currency for the 6 months ending 30 September 2017 is expected to decline by around 2%. This reflects in particular continuing high market growth, including by easyJet, in key summer holiday markets such as Spain and Portugal. easyJet’s capacity is expected to grow in the second half by 8.5%.

easyJet currently expects to deliver a headline profit before tax for FY 2017 of between £380 million and £420 million.

With the ongoing low cost of fuel allowing capacity to stay in the market, easyJet currently expects continued pressure on yields into the next financial year.

Eleanor Steed
By Eleanor Steed July 20, 2017 11:27