LCC makes £550m in first quarter as share price rises
easyJet has reported a 32% growth in revenues to £550m in the first quarter as its share price is sent up 11%.
According to an interim management statement released today (January 22), revenue per seat grew 23% to £45.57 and 10.1% more passengers were carried year-on-year.
The airline's share price jumped from 255p per share at close of trading yesterday to a day's high of 293p, contrasting sharply against recent profit warnings issued by rival Air France KLM.
easyJet said its position had strengthened in the key markets of Gatwick, Milan, Paris and Madrid, helping it fill 10.1m seats.
The no-frill's carrier announced money market deposits of £801m and US$1bn in untapped financing.
Andy Harrison, easyJet's Chief Executive, said:
"In the current economic climate there is a ‘flight to value' with European consumers choosing the benefits of easyJet's great value network serving primary airports.
"In particular, we are seeing business travellers and long haul leisure travellers switching to easyJet in search of better value.
"This is more than compensating for some softness in discretionary travel and means easyJet continues to win market share."
Mr Harrison said revenues predictions for the first half will be higher than first expected but still uncertain given the difficult trading environment and the weakening pound.
"At current fuel and exchange rates easyJet expects to be profitable," he added.
Ancillary charges, such as checked baggage charge, showed the greatest change generating 71.4% more revenue per seat as a result.
Passengers paid, on average, £8.68 per seat for ancillary charges, up from £5.06 the previous year. Total revenue from such charges grew from £57m to £105m, an 82.9% increase.
www.easyJet.com