easyJet reports improved half year losses

easyJet have announced reduced interim losses with winter margin improved by 4 percentage points to -2.4% from -6.4% and the loss before tax, reflecting seasonality of business, down 58% to £17m from £40m.Total revenue grew by 14% to £719 million.

Commenting on the results, Andy Harrison, easyJet Chief Executive said:

“The first half of our financial year has seen growth in all areas.  Our winning
combination of low cost with care and convenience on a network now covering 75
airports in 20 countries on nearly 300 routes continues to attract new customers.
In the six months to March 2007, we flew over 16 million passengers, up 11%.

 

 

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“Our interim results show continued improvements with our margin rising by 4.0
percentage points from minus 6.4% to minus 2.4%.  We have grown our total revenue
per seat by 84 pence per seat and reduced our costs excluding fuel by 57 pence per
seat, allowing us to more than halve our seasonal loss from £40m to £17m.

 

“We continue to introduce new Airbus aircraft into our fleet, thereby maintaining
one of Europe’s cleanest and greenest aircraft fleets, and in April we collected our
100th Airbus A319.  Through our investment in modern fuel efficient aircraft we have
reduced our emissions of CO2 per passenger kilometre by 18% since 2000.

 

“Looking forward, our growth measured in available seats will accelerate during the
summer months leading to approximately 15% growth for the full year to September
2007.  As we stated last winter, we continue to see pressure on yields in the summer
against high comparatives from last year and due to continued competition.  Low
fares underpin our growth and in the second half we have reduced many of our lead-in
fares and increased our promotional activity to sustain high load factors in weaker
market conditions.  Our low fares are supported by maintaining focus on ancillary
revenues and our cost base. We anticipate further progress on unit cost reductions,
excluding fuel, in the second half and for the full year we anticipate unit fuel
costs to be slightly down year on year.  Our guidance remains unchanged, for the
full year to September 2007 we expect pre-tax profit growth of 40% to 50%.”


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