Easyjet claims it is on track to achieve full-year pre-tax profit growth of 40%-50% after unveiling its third quarter trading statement today.
The airline grew passenger numbers by 13% to 9.9 million in the three months to June 2007 compared to the same period in 2006.
“The impact of reduced lead in fares, increased promotional activity and the doubling of Air Passenger Duty in the UK has resulted in a fall in total revenue per seat of 8% compared to the same quarter last year,” it said in a statement.
“Rapid growth outside the UK means 46% of easyJet’s revenues are now in currencies other than GBP and at constant exchange rates, unit revenues were down 7% per seat or 5% per passenger.”
But it said the strong pound had helped offset the impact of foreign exchange rates on revenues, with 35% of costs in US Dollars, 26% Euros and 8% Swiss Francs.
“Continued investment in a modern, low cost fleet and on-going improvements in efficiency have resulted in unit costs, excluding fuel, being down in excess of 10% compared to the same period last year,” it continued.
The airline’s July traffic statistics, also released today, show load factors of over 88%.
It expects to maintain high load factors for the summer, “while second half guidance on revenue per seat remains unchanged, down 5% – 10%”.
By Bev Fearis
