There is no getting away from it, the results from EasyJet this morning are grim, posting a loss of £24 million (last year a surplus of £7 million) with the airline reeling from 'the impact from external shocks to demand from terrorism events relating to Sharm el-Sheikh, Paris and Brussels'.
But the art of facing both ways at once, is demonstrated in the art of writing up the financial results press release and Regulatory Service Notices. The positive words abound and for shareholders the dividend is up 25% subject to AGM approval.
Admittedly the well is far from dry as they can call on cash and money market deposits of £1,057 million, an increase of £81 million year-on-year. Cushty.
• easyJet delivered a robust performance in line with expectations
• Total revenue increased to £1,771 million. Passengers grew to 31 million, driven by disciplined capacity growth with stable load factor
Strong cost control
• Profit before tax and margin broadly flat at constant currency delivered through strong cost control
• Targeting flat cost per seat excluding fuel at constant currency from FY 2015 to FY 2019 at normal levels of disruption
• Cost control underpinned by short term action and structural initiatives
Capital structure and capital allocation
• Maintaining a strong balance sheet, targeting current credit rating
• Proposed increase in ordinary annual dividend to 50% payout of post-tax income
• Forward bookings in line with last year. easyJet is well placed to grow revenue and profit this financial year and deliver sustainable returns and growth for shareholders
Total revenue (£ million)
(Loss) / profit before tax (£ million)
Constant currency profit before tax (£ million)
Basic (loss) / earnings per share (pence)
Constant currency revenue per seat (£)
Constant currency cost per seat including fuel (£)
Capacity (millions of seats)
Load factor (%)
• Revenue per seat decreased by 4.2% year-on-year on a constant currency basis, and by 6.6% per seat on a reported basis to £51.29
See more at: http://mediacentre.easyjet.com/stories/9801#sthash.X8yh9q9K.dpuf
JULIAN BRAY +44(0)1733 345581 Aviation Expert, Journalist & Broadcaster, Aviation Security & Airline Operations Expert, Travel / Maritime & Cruise Industry, NUJ, EQUITY, LIVE ISDN LINK, Broadcast ISDN COOBE ++44 (0)1733 345020 e&oe Old faithful NOKIA: 07944 217476 www.aviationcomment.com