14 November 2006

Easyjet profits rise by 56%

On the back of a 56% rise in profits and a record pre-tax profit of £129m, Easyjet has announced an expansion of its fleet.

The low-cost airline said that passenger numbers were up by 11.5% to 33 million.

Commenting on the results, easyJet Chief Executive, Andy Harrison, said: "2006 was another year of successful growth with 33 million passengers choosing to fly easyJet, attracted by our winning combination of low cost, with care and convenience. We have continued to expand our range of destinations with 58 new routes launched during the year and the successful opening of our new base in Milan Malpensa.

“Our profits increased by 56% to a record £129 million, despite the big increase in fuel costs. Our profit growth was driven by a 34% increase in ancillary revenues per seat, significant improvements in passenger yields and a continuing reduction in our non fuel unit costs.

“Our Airbus order supports both our growth and our environmental credentials. The combination of our modern fleet, with an average age of 2.2 years, and high utilisation means that we emit nearly 30% fewer emissions per passenger kilometre than traditional airlines flying similar routes."

EasyJet announced that it had reached agreement with the European aircraft manufacturer, Airbus, to exercise existing options over 52 Airbus A319 aircraft for delivery between 2008 and 2010 and to secure new options over a further 75 A320 family aircraft.

This will underpin easyJet’s growth over the coming years and ensures that the airline continues to operate some of the cleanest, quietest aircraft available. It will also help to secure thousands of European manufacturing jobs.

Today’s announcement means that easyJet now has 104 aircraft on firm order with Airbus, with a list price of over $4 billion, and holds purchase rights over a further 123 aircraft.

The total size of easyJet’s order of Airbus aircraft (including options), first announced in October 2002, is 315. Of these, 88 have already been delivered.

(SP/KMcA)