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07/05/2003
Budget airline easyJet reports £47m loss
Europe's largest low-cost airline, easyJet, has announced a loss of £47 million in the six months up to March this year.
However, the loss was reported despite record revenues of £373 million for the first half-year. Revenue was up 92% on the same period in the previous year, though this figure takes into account a combined easyJet and Go Fly operation in 2002 - the underlying revenue increase was put at 25%.
The company blamed the the interim report's poor figures on seasonality and the conflict in Iraq.
The Chief Executive of easyJet, Ray Webster, said: "Our excellent growth in the first half demonstrates the continued attractiveness to passengers of the easyJet low-cost business model. In addition to an almost 40% increase in capacity we have increased load factors by 1.1%, although at some cost in yields. The impact of external events, such as the conflict in Iraq, has placed further pressure on yields, which were consequently down 10.7% over the period.
"The loss for the first half primarily results from the normal seasonality of the business. In the first half demand is traditionally weaker, we schedule most of our planned maintenance and we experience more weather-related delays. In this half-year we also lost most of the benefit of the Easter period, as it has fallen in the second half."
The loss after tax for the period was £46.9 million, which compares to a reported profit of £0.8 million in the same period of the prior year. The average fare was £37.45, almost 11% lower than last year.
Easyjet reported £346 million cash on the balance sheet and noted that a deal struck with Airbus deal for 120 A319 aircraft had been ratified by shareholders.
Commenting on the trading outlook, Mr Webster added: "Our business model remains robust and it is clear, as we move towards the busy summer period, that passengers are still willing to travel within Europe and they are responsive to price.”
(SP)
However, the loss was reported despite record revenues of £373 million for the first half-year. Revenue was up 92% on the same period in the previous year, though this figure takes into account a combined easyJet and Go Fly operation in 2002 - the underlying revenue increase was put at 25%.
The company blamed the the interim report's poor figures on seasonality and the conflict in Iraq.
The Chief Executive of easyJet, Ray Webster, said: "Our excellent growth in the first half demonstrates the continued attractiveness to passengers of the easyJet low-cost business model. In addition to an almost 40% increase in capacity we have increased load factors by 1.1%, although at some cost in yields. The impact of external events, such as the conflict in Iraq, has placed further pressure on yields, which were consequently down 10.7% over the period.
"The loss for the first half primarily results from the normal seasonality of the business. In the first half demand is traditionally weaker, we schedule most of our planned maintenance and we experience more weather-related delays. In this half-year we also lost most of the benefit of the Easter period, as it has fallen in the second half."
The loss after tax for the period was £46.9 million, which compares to a reported profit of £0.8 million in the same period of the prior year. The average fare was £37.45, almost 11% lower than last year.
Easyjet reported £346 million cash on the balance sheet and noted that a deal struck with Airbus deal for 120 A319 aircraft had been ratified by shareholders.
Commenting on the trading outlook, Mr Webster added: "Our business model remains robust and it is clear, as we move towards the busy summer period, that passengers are still willing to travel within Europe and they are responsive to price.”
(SP)
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