October 3, 2014
easyJet posts revised profit forcast
easyJet reported revenue per seat at constant currency for the three months to September 30th, 2014 is expected to grow by around 1.5% driven by a strong finish to the summer season. Revenue per seat at constant currency for the six months to 30 September 2014 is expected to grow by around 2%. Cost per seat excluding fuel at constant currency for the six months to 30 September is expected to increase by c.0.7%. This strong performance was driven by the continued delivery of easyJet lean initiatives offset by increases in regulated airport charges, navigation and the costs associated with the increased load factor in the period. It is expected that easyJet’s unit fuel cost in the six months to 30 September 2014 will be approximately £2m favourable compared to the six months to September 30th, 2013; and that the impact of exchange rate movements (including those related to fuel) will be around £15m favourable compared to the six months to September 30th, 2013. The impact of the Air France pilots’ strike in September is expected to increase easyJet’s revenue by £5m as Air France passengers switched to easyJet. This combined with the strong finish to the year means that the Board’s expectation is for a pre-tax profit for the twelve months ended September 30th, 2014 of between £575m and £580m compared with the previous guidance of £545m to £570m. In line with its revised dividend policy, easyJet expects to declare a dividend in respect of the year ended September 30th, 2014 based on a pay-out ratio of 40% of profit after tax.