EasyJet announces 18 per cent jump in annual profit
EasyJet made a pre-tax annual profit of £686 million to the end of September, an 18% rise on the previous year.
Chief executive Carolyn McCall put the £105 million boost down to a combination of cheap fuel, which had led to a reduction in air fares, an increase in consumer confidence and a rise in overall spend.
She said the poor weather in the UK over the summer, coupled with the strength of the pound against the euro, had also led to an increase in business this year.
However, she told the BBC that the airline had done well in all of its markets, not just the UIK.
She said the rise had not been driven by an increase in seat revenue as ticket prices were, on average, lower than the previous year and easyJet’s lead in fare is still the same as it was when it launched 20 years ago. Instead, she said it was down to a rise in spending.
"Our outlook for the longer term is positive," she said." We expect demand in our markets to be sustained and for easyJet to continue to be a winner in its markets.
" We will see passenger growth of 7% a year, sustaining margins through rigorous cost control and the benefit of fleet up-gauging, resulting in positive profit momentum.
"We remain totally focused on our network advantage, digital leadership and offering our customers great low fares and service. We continue to invest in profitable growth, ensuring our digital advantage and giving our customer good value fares."
EasyJet’s passengers increased by 6% to 68.6 million, with a record load factor in August of 94.4
Annual load factor increased by 0.9 percentage points to 91.5%.
Total revenue increased by 3.5% to £4,686 million and by 6.5% on a constant currency basis.
Revenue per seat increased by 1.5% year-on-year on a constant currency basis, whilst capacity grew by 5% to 75 million seats.
The cost per seat fell by 3.4%, due to currency and fuel price reductions.
The airline said it had also delivered £46 million of sustainable savings in 2015.
As it announced this year’s results, the airline also revealed TUI Airines’ former chief operating officer Chris Browne will join easyJet as a non-executive director in January.
Chairman John Barton said: "I and the easyJet team are delighted to welcome Chris as a non-executive director. She has an impressive track record in the aviation and travel industries with particularly strong operational and strategic expertise. I also know that she will fit very easily into the easyJet culture.
John Browett will step down from the Board on December 1. Barton added: "I would also like to thank John Browett for his exceptional contribution to easyJet over the past eight years. He has been an active member of the Board that has supported the executive in building easyJet’s sustained success."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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