EasyJet announces FY2016 results

Eleanor Steed
By Eleanor Steed November 15, 2016 14:17

EasyJet announces FY2016 results

EasyJet has posted its results for the fiscal year ending September 30, 2016. During the period, EasyJet served a record number of passengers at 73.1 million, up 6.6% year on year with record load factor at 91.6% compared to 91.5% in FY2015. Capacity grew by 6.5% in the period to 80 million seats.

The UK low-cost carrier posted total revenue of £4,669 million, a decline of 0.4%, while revenue per seat was down 6.4% to £58.46 (a decline of 6.9% at constant currency), which the airline said reflects the impact of external events. Total cost per seat improved by 2.0%, decreasing to £52.26 (a decrease of 4.6% at constant currency). Cost per seat excluding fuel increased by 2.6% to £38.31 and improved by 1.1% per seat at constant currency, slightly ahead of target, despite high levels of disruption.

Return on capital employed at 14.6% remains significantly above easyJet’s cost of capital.

EasyJet maintains that its results demonstrate “resilient underlying performance, delivered in spite of unprecedented external events which have impacted profit before tax by an estimated £150 million and net foreign exchange headwinds of £88 million.” Profit before tax in the period was £495 million compared to £686m in 2101.

EasyJet declared of dividend of 53.8 pence per share (2015: 55.2 pence), in line with the company’s increased payout policy of 50% of profit after tax. The airline ended the year with net cash of £213 million (2015: £434 million) and sector leading credit rating (Standard and Poors: BBB+, Moodys: Baa1)

“easyJet achieved a resilient performance in 2016, in the face of significant challenges including a series of external events and foreign exchange headwinds,” said Carolyn McCall, easyJet Chief Executive. “Over the last year we have carried a record 73 million passengers who have enjoyed a third successive year of falling fares.  This great value combined with our friendly service on Europe’s leading network means that passenger loyalty continues to grow with 54 million of them flying with us again in 2016 – 21 million more than five years ago.

“The team has worked diligently throughout the year to drive out cost and secure our strong number one positions through disciplined growth.   This has enabled easyJet to deliver almost half a billion of profit and an attractive dividend in line with our 50% pay out policy.

“Looking ahead, the easyJet model remains strong as does the demand environment and we continue to see opportunities in the medium term to grow revenue, profit and shareholder returns.  In a tougher operating environment strong airlines like easyJet will get stronger and we will build on our already well-established network.

“Almost half of our growth next year will be in the UK, with significant growth also in Switzerland, France and Italy. Our strategy of strengthening our positions at our key airports will see double digit growth in key bases in London, Manchester, Venice, Berlin and Amsterdam.”

Eleanor Steed
By Eleanor Steed November 15, 2016 14:17