Just in case there is any doubt about the state of easyJet finances, this is the latest statement about easyJet's half-year performance. I think that even the most critical of contributors would agree this is overall good news. Read this and you will then be in an informed position to evaluate Leo's assertions about easyJet's future. IMHO it looks quite good - there are whole lot of airlines out there who would just love to be in this position:
RNS Number : 7286R easyJet PLC 06 May 2009
easyJet plc
Interim results for the six months to 31 March 2009
GOOD 1ST HALF REVENUE PERFORMANCE; FULL YEAR GUIDANCE MAINTAINED
Results at a glance
H1 2009 H1 2008 change
Total revenue (£ million) 1,032.8 892.2 15.8%
Loss before tax - underlying (£ million) 1 (129.8) (48.4) (168.2)%
Loss before tax - reported (£ million) (116.5) (57.5) (102.6)%
Pre tax margin - underlying (%) 1 (12.6) (5.4) (7.2)pp
Return on equity - reported (%) (7.4) (3.7) (3.7)pp
Basic EPS - reported (pence) (20.4) (10.3) (98.1)%
TOTAL REVENUE PER SEAT UP 14.9% (7.6% AT CONSTANT CURRENCY) DRIVEN BY STRENGTH OF EASYJET NETWORK, IMPROVED ANCILLARY REVENUE PERFORMANCE AND A 4.8% SECTOR LENGTH INCREASE ASSOCIATED WITH THE ACQUISITION OF GB AIRWAYS
INCREASE IN PRE-TAX LOSS DRIVEN BY UNIT FUEL COST INCREASE EQUIVALENT TO £90.6 MILLION (£3.87 PER SEAT), MOVEMENT OF EASTER INTO THE SECOND HALF AND £13.7 MILLION REDUCTION IN INTEREST RECEIVABLE
TOTAL UNDERLYING COST PER SEAT1 (EXCLUDING FUEL AND CURRENCY MOVEMENT) UP 6.5% PARTLY DRIVEN BY INCREASED SECTOR LENGTH AND PLANNED LOWER AIRCRAFT UTILISATION DURING THE WINTER
STRONG POSITIVE CASH FLOW GENERATION WITH CASH AND MONEY MARKET DEPOSITS INCREASING IN THE SIX MONTHS BY £268.6 MILLION TO £1,131.1 MILLION (EXCLUDING RESTRICTED CASH OF £103.6 MILLION)
PASSENGER NUMBERS UP 2.9% TO 19.4 MILLION AND LOAD FACTOR IMPROVED 1.7PP TO 82.9%
FOR THE FIRST TIME, OVER HALF OF EASYJET'S PASSENGERS ORIGINATED OUTSIDE THE UK WITH A 21.8% GROWTH IN EASYJET'S PASSENGER NUMBERS ON EUROPEAN-BASED ROUTES
EASYJET'S POSITION HAS STRENGTHENED IN KEY GROWTH MARKETS OF LONDON GATWICK, PARIS, MILAN AND MADRID
FORWARD BOOKINGS, MEASURED BY AVAILABLE SEATS BOOKED, AND TOTAL REVENUE PER SEAT BEFORE THE IMPACT OF EXCHANGE RATES IN LINE WITH LAST YEAR WITH OVER 40% OF THE SUMMER NOW BOOKED
Note 1: Underlying financial performance excludes £9.1 million of costs associated with the integration of GB Airways in 2008 and a £13.3 million profit on the sale of two aircraft in 2009.
Commenting on the results, Andy Harrison, easyJet Chief Executive said:
"The 7.6% growth in our constant currency revenue per seat is a strong result in the current economic climate and underlines the strength of our network and our competitive position. Overall capacity in the European short-haul market shrank by 5.6%, however, easyJet gained market share in the period, with passenger numbers growing by 2.9% to 19.4 million.
"The reduction in our H1 profit margin was driven by an increase of £3.87 per seat in our unit fuel costs (equivalent to £90.6 million), which will unwind as our fuel hedging policies adjust to lower market prices. The movement of Easter into the second half of the year also depressed our first half margins.
"While we remain cautious about the consumer economy, at current fuel prices and exchange rates, easyJet expects to be profitable for the full year.
easyJet is financially strong, with cash and money market deposits as at 31 March 2009 exceeding £1 billion, and has good and well-established market positions and the Board remains confident in easyJet's future prospects."