Resilient performance
• easyJet delivered a robust performance in line with expectations
• Total revenue increased to £1,771 million. Passengers grew to 31 million, driven by disciplined capacity growth with stable load factor
Strong cost control
• Profit before tax and margin broadly flat at constant currency delivered through strong cost control
• Targeting flat cost per seat excluding fuel at constant currency from FY 2015 to FY 2019 at normal levels of disruption
• Cost control underpinned by short term action and structural initiatives
Capital structure and capital allocation
• Maintaining a strong balance sheet, targeting current credit rating
• Proposed increase in ordinary annual dividend to 50% payout of post-tax income
Outlook
• Forward bookings in line with last year. easyJet is well placed to grow revenue and profit this financial year and deliver sustainable returns and growth for shareholders
2016
2015
Change
Favourable/(adverse)
Total revenue (£ million)
1,771
1,767
0.3
%
(Loss) / profit before tax (£ million)
(24)
7
Constant currency profit before tax (£ million)
5
7(*)
Basic (loss) / earnings per share (pence)
(5.1)
1.3
(6.4)
pence
Constant currency revenue per seat (£)
52.62
54.91
(4.2)
%
Constant currency cost per seat including fuel (£)
52.46
54.83
4.3
%
Capacity (millions of seats)
34.5
32.2
7.4
%
Load factor (%)
89.7
89.7
-
Passengers (millions)
31.0
28.9
7.4
%
*Profit before tax at constant currency after balance sheet revaluations
• Revenue per seat decreased by 4.2% year-on-year on a constant currency basis, and by 6.6% per seat on a reported basis to £51.29
• Disciplined allocation of capacity, stable load factor and strong October trading were offset by the impact from external shocks to demand from terrorism events relating to Sharm el-Sheikh, Paris and Brussels
• Cost per seat excluding fuel grew by 0.5% and decreased by 4.3% including fuel, on a constant currency basis. Total cost per seat decreased by 5.0% on a reported basis to £51.98
• Constant currency profit before tax of £5 million (H1 2015: £7 million(1)), maintaining broadly flat margins. Adverse foreign exchange impact of £33 million, including £4 million relating to balance sheet revaluations
• The decrease in cost per seat was primarily driven by lower fuel costs. Increased disruption costs mainly due to terrorism events were offset by benefits from fleet up-gauging and easyJet lean initiatives
• New bases opened in Venice and Barcelona. easyJet exited the Fiumicino base ahead of plan, redistributing aircraft to secure better returns. The first seasonal base in Palma de Mallorca will open in Summer 2017
• Sector leading credit ratings secured and successful bond issued in February, raising €500 million. easyJet ended the first half with cash and money market deposits of £1,057 million, an increase of £81 million year-on-year
• In the six months to 31 March 2016, easyJet returned £219 million (or 55.2 pence per share) to shareholders via ordinary dividends at a payout ratio of 40% for the year ended 30 September 2015
Commenting on the results, Carolyn McCall, easyJet Chief Executive said:
“easyJet has delivered a robust financial performance during the half year despite the well-publicised external events.
"Underlying consumer demand has been strong with UK beach traffic providing a healthy start to the half and easyJet’s biggest-ever ski season helping to deliver increased passenger numbers and higher revenue during H1.
"Consumers have enjoyed lower fares, which have decreased by 6% year-on-year, the second successive year of falling fares, as the benefits of lower fuel costs are passed on to passengers. Active cost control by the airline has helped maintain margins.
"This performance is a clear demonstration of the strengths of easyJet's unique combination of Europe's leading network coupled with friendly service, low fares, and digital and data leadership.
"We are confident that over the full year we will again grow passenger numbers, revenue and profit. As a result of easyJet balance sheet and the Boards confidence in the future success of the business, the annual dividend payout ratio will increase by a quarter to 50% subject to AGM approval.”
For the full report, please click here.
For further details please contact easyJet plc:
Institutional investors and sell side analysts:
Stuart Morgan Investor Relations +44 (0) 7989 665 484
Michael Barker Investor Relations +44 (0) 7985 890 939
Media:
Paul Moore Corporate Communications +44 (0) 7860 794 444
Dorothy Burwell Finsbury +44 (0) 207 251 3801
+44 (0) 7733 294 930
