Easyjet has reported a 9% rise in its full-year profits as departing chief executive Ray Webster described the carrier as making “sound progress” during the year.
Pre-tax profits for the year to the end of September climbed £6 million to £68 million, slightly higher than the £63 million predicted by many analysts. The performance came despite a rise in fuel cost per seat of 47%.
Webster said the escalating fuel costs were partly offset by a 17% rise in ancillary revenue – a key focus for the carrier – and a reduction in non-fuel costs. Its cost base per seat, excluding fuel, fell 4.4%.
Passenger numbers increases 21% to 29.6 million with load factors up from 84.5% to 85.2%.
Webster, who retires next month, said trading conditions remained tough in the UK and said average fares would fall slightly in the current financial year.
But he added a “strong focus” on controllable costs should result in a 3% to 5% reduction in cost per seat, excluding fuel.
“While we anticipate a slight reduction in total revenue per seat, ancillary revenues will improve with double digit percentage growth supported by a series of new initiatives,” he said. “Overall, we therefore expect to achieve mid to high single digit percentage profit growth.”
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Report by Steve Jones
