EasyJet reports winter boost
British budget airline easyJet today said it had seen a “flight to value” after winter booking levels improved on the same period a year earlier.
The Luton-based carrier said the withdrawal of competition on some routes and its decision to restrict growth meant its measure of revenues per seat flown would be slightly ahead in the first half of its new financial year.
The update came as easyJet said increased fuel costs had caused annual profits to fall 45% to £110m (€131m) in the year to September 30. The decline came despite a 31.5% rise in revenues to £2.36bn (€2.81) as passenger numbers also increased by 17.3% to 43.7 million.
Chief executive Andy Harrison described the trading performance as good and said there was evidence the airline was benefiting in the current economic climate from a “flight to value” for both business and leisure passengers.
He added: “EasyJet is well placed to emerge as a winner, due to our cost base, strong balance sheet, new fuel efficient fleet and the quality of the easyJet network.”
EasyJet did not make a shareholder payment today as it continues to pump profits back into the business to fuel growth.
This policy came under the spotlight last week after non-executive director Stelios Haji-Ioannou, who founded the business in 1995, called on the board to start making payouts as the company scales back growth plans.
He has increased his personal stake in the business to almost 27% amid signs of escalating tensions on the company’s board.
