It looks like EZY will do a lot better than FR in 2008. EZY forecasting 20% increase in profit FR forecasting 50% drop in profit
Key points so far this year
1. Load factor. FR 75% EZY 85.3% and the higher the load factor the higher the yield.
2. FR are carrying a lot more passengers but 10million are the 1p-£10 tickets (lost leader)
3. Fuel hedging 2008, EZY 30% FR 0%
4. Cost control. FR have the best cost control of any airline in the world but their cost have been going up and EZY cost have been coming down and with no fuel hedging in 2008 by FR, EZY could end up with the lower cost per passenger.
5. EZY forwards bookings looking very good. FR web site with its poor performance would have cost them passengers.