Tuesday, 12 May 2015
easyJet - Interim Results
easyJet have today announced results for the half year to end march 2015 (link via Investegate) . Airlines traditionally make losses over the winter months before flying into the black during the lucrative summer season. Last year the airline reported a loss of -£53m, so it is welcome news to see profits for the half year have come in at £7m
It is over 12 years since the company were in a position to declare a first half-year profit. These came on the back of increased revenues from higher passenger numbers and benefiting from the fall in oil prices combined with an increase in capacity.
Total income rose 3.8% to £1.76bn as revenues per seat increased.
Commenting on these results, CEO Carolyn McCall said :
"easyJet has delivered a record performance in the first half of the year by continuing to deliver its strategy of making travel easy and affordable for passengers. The profit in the half reflects the delivery of our customer focused revenue initiatives and a strong finish to the ski season as well as the benefit we received from the lower fuel price and favourable foreign exchange movements.
As we enter the important summer season forward bookings are in line with last year and as we predicted passengers are benefitting as fares fall to reflect a more competitive operating environment and lower fuel costs. easyJet continues to be well positioned to grow revenue and profit this year, delivering sustainable returns to shareholders due to its compelling network, low cost base and strong balance sheet."
Looking to the full year, the air traffic control strike in France during April is expected to knock ~£25m from profits whilst adverse exchange rate will impact a further ~£40m. On the positive side, easyJet's unit fuel bill for the full year is likely to decrease by around ~£100m compared to the previous year.
Net cash as at end march was £416m compared to £449m at 31 March 2014.
The share price has seen a strong run over the past few months but in early trading was down around 7% at £17.00. The shares tend to be a little volatile but I am surprised to see the reaction from the markets - as far as I can see, these results were pretty much in line with expectations.
More following the full year results later in the year.