Menu
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)
Related UK National News Stories
Click here for the latest headlines.
02 February 2007
BA reports fall in profits
British Airways has reported a fall in profits in the third quarter. Pre-tax profits for the three-month period until the end of December dropped to £113 million from £166 million in the same period the year before. The announcement comes in the same week that a threatened strike by cabin crew over sick leave, pay and conditions was called off.
BA reports fall in profits
British Airways has reported a fall in profits in the third quarter. Pre-tax profits for the three-month period until the end of December dropped to £113 million from £166 million in the same period the year before. The announcement comes in the same week that a threatened strike by cabin crew over sick leave, pay and conditions was called off.
09 June 2005
Manufacturing output shows slight upward trend
Figures published today by the Office of National Statistics have shown that between March and April this year manufacturing output rose by 0.9%. While analysts warn that monthly growth rates are "volatile" indicators of productivity, there were nonetheless widespread rises in manufacturing, the most significant being increases in output of 2.
Manufacturing output shows slight upward trend
Figures published today by the Office of National Statistics have shown that between March and April this year manufacturing output rose by 0.9%. While analysts warn that monthly growth rates are "volatile" indicators of productivity, there were nonetheless widespread rises in manufacturing, the most significant being increases in output of 2.
28 November 2003
Poorer customers to struggle with water prices, says watchdog
Low income customers across the east of England may struggle to pay their water bills if the proposed price increases get the go-ahead, says the local watchdog.
Poorer customers to struggle with water prices, says watchdog
Low income customers across the east of England may struggle to pay their water bills if the proposed price increases get the go-ahead, says the local watchdog.
04 September 2015
Woman Arrested On Easyjet Flight
A woman has been arrested after she was able to board an Easyjet flight at Gatwick Airport – despite not having a passport or boarding pass.
Woman Arrested On Easyjet Flight
A woman has been arrested after she was able to board an Easyjet flight at Gatwick Airport – despite not having a passport or boarding pass.
03 September 2015
easyJet Post Higher Profit Forecast
easyJet has increased its full-year profit forecast following better-than-expected trading in August. The company's full-year profit, before tax, is now expected to be between £675m and £700m, as opposed to the previously expected £620m to £660m. The figures come after the airline set a new load factor of 94.4% for the month of August.
easyJet Post Higher Profit Forecast
easyJet has increased its full-year profit forecast following better-than-expected trading in August. The company's full-year profit, before tax, is now expected to be between £675m and £700m, as opposed to the previously expected £620m to £660m. The figures come after the airline set a new load factor of 94.4% for the month of August.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
