Record profits for easyJet

Easyjet has reported record pre-tax profit of £201.9m in its preliminary results for the 12 months to September 30.

The figure includes a £10.6m one-off benefit of reinstating easyJet’s investment in The Airline Group.

Chief executive Andy Harrison said: “This is yet another year of record profit at easyJet which underlines the strength of our business model. Despite challenging conditions, revenue, profit and return on equity have all shown strong improvements reflecting the success of our focus on low-cost with care and convenience.

“Looking forward, for this winter we expect total revenue per seat to be broadly in line with last winter. For summer 2008, we expect the effect of annualising APD, checked bag charges and growing ancillary revenues to result in total revenue per seat being ahead of the previous summer.

“High fuel costs will be partly offset by the weak US Dollar, however we anticipate an overall increase in Sterling unit fuel costs. Unit costs excluding fuel are anticipated to be similar to last year.

“The fuel environment remains challenging; however, we believe the easyJet business model is resilient and well positioned for success. Over the past two years, we have significantly increased profitability and in the current financial year, the Board anticipates an increase in underlying profit before tax of around 20%.”

He added that the outlook excludes the proposed acquisition of GB Airways, which is due to be completed no later than January 31.

“Excluding one-off costs of around £12m we expect the acquisition to be earnings enhancing in the current financial year,” he said.

For the year to September 30, underlying profit before tax increased 48% to £191.3m and underlying earnings per share increased 50% to 34.8p. These figures exclude the effects of the reversal of the impairment of the Group’s investment in The Airline Group of £10.6m.

The airline said passenger numbers were up 13% to 37.2m with consistently high load factors averaging 84%

Total revenue increased 11% to £1,797.2m and ancillary revenue increased by 30% to £171.2m, a 47p increase per seat

In the year, easyJet introduced eight new destinations and 46 routes, expanding the network to 289 routes through 77 airports in 21 countries

It took delivery of its 100th Airbus A319 in April, bringing total fleet to 137 aircraft with average age of just 2.7 years.

It also announced a planned acquisition of British Airways franshise GB Airways to expand presence at London Gatwick Airport.

In June it launched easyJetHolidays.com and for the corporate market it has entered a partnership with Amadeus and Galileo to allow travel management companies to access easyJet via the GDS.

By Bev Fearis

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