Ryanair & Easyjet results

[lowfaresbuster]

Easyjet announced losses of GBP£ 27.3M for the 6 months to 31st March 2004. Not new for easyjet to have a bad quarter or 2.

What is new is Ryanair not to pounce on Easyjet's situation
like:

"Ryanair offering 273,000 seat for free to represent every £100 easyjet has lost in the last 6 months"

- I am 99% sure Ryanair will announce a q1/2004 loss!

[Wee Weasley Welshman]

Actually the ezy results are good - much better than last year in fact:

Pre-tax losses were £27.3m ($48.3m) for the six months to 31 March, down from a £48.1m loss a year ago.

Carrying 15% more people over the winter and losing £20m less doing so is a good result. As everyone knows, the profit is made in the summer and with only a £27.3m winter loss to cover...

Cheers

WWW

[Powerjet1]

Easy have done well to cut the winter loss by about 50%. Unfortunately the shares have taken a nose dive, dropping some 25% because of a rather weak outlook forecast, expressing 'caution' on FY. Currently standing at about 20% down at 230p.

[stalling attitude]

it does make you wonder how much the smaller players like Baby and mytravelite are losing and are going to lose if the big boys of the market are talking so negatively about the next 6 - 8 months.

[Toilet_Town]

Don't forget easyJet have also;

Introduced the A319 at GVA and LGW.

Opened up Dortmund, Cologne and Berlin bases.

New Routes from LTN, STN, LGW and most other UK bases.

Training over the winter has been massive 737 & A319

All in all not a bad set of figures.

I'm sure the Summer will reap the rewards for easyJet.

:ok:

[brabazon]

Toilet-Town/WWW

easyJet's CEO obviously doesn't share your optimism which is why his dampener has sent the share price down.

[Wee Weasley Welshman]

Yep - going to be a tough year in European shorthaul. O Leary has already said there will be a war and some airlines will go under as a result.

There are a lot of new startups, old rebrands and struggling traditional airlines all discounting themselves to death in order to survive. It can't and won't go on for much more than a year or two.

Share prices are rarely indicative of much - BA was never worth <99p a share and Ezy was never worth >380p a share.

At the end of the day there is still something like 26 million passengers using EZY this year - it doesn't matter who flies them and for what. They are getting used to flying regularly and cheaply and frequently and thats good news for all pilots in the long run - regardless of livery.

Cheers

WWW

[MerchantVenturer]

I have flown to Copenhagen this year with EZY for £46 return all in, and I have a flight booked to Berlin in July for £41 return all in.

I have flown to Scotland several times for around £25 return all in.

Perhaps I am luckier than some in that I am able to book well ahead to get these prices.

Of course to a customer these fares are marvellous and I'm not going to turn them down. However, I would regard £70 or £80 to Copenhagen or Berlin as a good deal and would willingly pay it.

Am I untypical (I pay my own fares BTW)?

My point is that a relatively modest increase in fares would not deter me from flying, and I would much prefer this if it means flights would be sustained from my local airport, rather than returning to the old days of uncontested full service carriers with fares often £200 plus for a return to Scotland.

[no sig]

brabazon

I can tell you first hand the easy CEO predicted the current situation at least 4 years ago. It's no surprise to him. His responsibilities to the market are of course to tell them as it is.

[Jamesair]

On the early business ceefax pages of the BBC the article mentioned that Easyjet planned 38 routes to 5 new destinations. It has disappeared from later news items.

Does anyone have any information on this?

sorry....I can answer my own question having just looked at the Easyjet website.

The new item should have said that Easyjet had opened 38 new routes to five new destinations and not planned to!!!!!!!"

[Powerjet1]

Jamesair

I think you will find they mean SXF, BUD, CGN, DTM, LJU,(new destinations already announced) plus a general 'joining of the dots' for others.

[dontdoit]

Wee Weasley Welshman - Are you absolutely sure you're not related to the former Iraqi "Information Minister" ?

[Wee Weasley Welshman]

Absolutely - and the introduction of the Airbus fleet will go entirely to plan without causing any disruption at all. ;)

WWW