The FINANCIAL — Low-cost airline easyJet Plc. on November 17 said its full-year profit before tax increased significantly from the previous year, marking the fifth consecutive year of record growth. Further, the company said it would take delivery of an additional 36 A320 aircraft between 2018 and 2021, according to Nasdaq.
Profit before tax increased 18.1 percent to 686 million pounds from 581 million pounds reported last year.
Earnings per share improved to 138 pence from 113.2 pence.
Total revenue grew 3.5 percent to 4.686 billion pounds from last year’s 4.527 billion pounds. The growth was 6.5 percent on a constant currency basis.
Passengers increased 6 percent to 68.6 million, with a record load factor in August of 94.4 percent. Annual load factor increased 0.9 percentage points to 91.5 percent.
Revenue per seat increased 1.5 percent on a constant currency basis, whilst capacity grew 5 percent to 75 million seats.
The board proposed a 22 percent increase in ordinary dividend to 55.2 pence from 45.4 pence.
Carolyn McCall, easyJet’s CEO, said, “Our outlook for the longer term is positive. We expect demand in our markets to be sustained and for easyJet to continue to be a winner in its markets. We will see passenger growth of 7% a year, sustaining margins through rigorous cost control and the benefit of fleet up-gauging, resulting in positive profit momentum.”
The unit fuel bill is expected to decline by between 140 million pounds and 160 million pounds during the year to September 30, 2016.
Further, the company said it has secured an agreement with Airbus to take delivery of an additional 36 A320 aircraft between 2018 and 2021, in the 186 seat configuration.
easyJet is exercising rights to 30 next generation NEOs under the existing framework agreement signed in 2013. These aircraft will help the company for faster replacement of some of its A319 aircraft and reduce overall unit costs.
Separately, the company announced the appointment of Chris Browne, formerly chief operating officer of TUI Airlines, as a non-executive director with effect from January 1, 2016. In addition, John Browett has announced his decision to step down from the Board with effect from December 31, 2015.
The stock fell 2.7 percent in early trade to 1,734.95 pence.
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