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EasyJet narrows losses in 1H

source: ATW

UK low-cost carrier (LCC) easyJet recorded a slightly reduced loss for the first half of its financial year compared to the same period a year ago, buoyed by increasing numbers of business travelers. The company made an after-tax loss of £41 million ($69 million) compared to a £47 million loss last time. The first half of easyJet’s financial year, which runs from October to the end of March, is traditionally the weaker half of the year. The carrier reported revenue of £1.70 billion, up from £1.60 billion for the year-ago period. CEO Carolyn McCall characterized the results as “a solid first-half performance.” Prospects for the rest of the year were good, she said: “There continue to be a number of attractive opportunities for easyJet to grow profitably in Europe.” The number of passengers carried rose 4%, to 27.6 million, 1 million more than for the same period last year. However, the number of business passengers, who tend to pay higher fares due to last-minute bookings and desire for higher-yielding seats, grew 8%. In the year ended March 31, the airline carried more than 12 million business passengers for the first time. The continuing emphasis on attracting business traffic has seen the carrier partnering with Sabre to enhance its booking processes and renewing its distribution agreement with Travelport. Revenue per seat grew 2.6% on a reported basis to £54.80. Other factors behind the company’s improved performance included the performance of allocated seating and management of baggage charges; closure of underperforming routes; and competitor capacity retrenchment resulting in a 1.3% (900,000 seat) decline in competitor capacity on easyJet routes over the six months. It predicts growth in Europe’s short-haul market will continue for the second half of the year, due to more stable fuel prices, improved economic forecasts and growing consumer confidence. It will also reap the benefit of a batch of recently acquired slots at London Gatwick.

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