EasyJet profits slide
Monday, 17 Nov, 2009
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EasyJet has forecast a “tough winter” after seeing annual profits slide by almost 65% to £43.7 million in the year to September.
Passenger numbers rose by 3.4% to 45.2 million in the 12 months with an improved load factor up 1.4 percentage points to 85.5%.
But the budget carrier was hit by rising fuel costs equivalent to more than £86 million in the period.
The airline said its position in European short-haul aviation strengthened with market share gains in Paris, Gatwick, Milan and Madrid and over a 10% increase in slots at capacity constrained airports.
EastJet continues to back the immediate reform of UK Air Passenger Duty, which taxes passengers rather than flights, into an emissions-based tax, and the phasing out of APD when aviation joins the European Emission Trading Scheme (EU ETS) in 2012.
The airline said it was an early advocate of aviation’s entry into the EU ETS as an international, market-based solution to ensuring aviation addresses its climate change responsibilities.
“We now look to the Copenhagen Climate Summit in December to produce a sensible global agreement on aviation and climate change,” the company said.
“Such a global agreement should recognise efficiency standards for aircraft, with the emphasis on planes utilising modern, more environmentally friendly technology.”
Chief executive Andy Harrison described the financial results as being “an extremely resilient performance” making EasyJet the best performing European airline based on its robust yields.
“We are one of the very few European airlines to make a profit during the last 12 recessionary months.”
He added: “We see a tough winter ahead. We are focussing our efforts on further cost savings and efficiency improvements together with optimising route profitability and aircraft allocation.
“We shall also benefit as our fuel hedges adjust to market prices.
“Putting all this together, at current fuel prices and exchange rates, we expect EasyJet to make substantial profit improvement in 2010.”
by Phil Davies
Phil Davies
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