orange in the red (Merged)
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orange in the red
Easyjet are about to post significant half yearly loses this week. It would appear that even the LCC's are feeling the pinch. Is anyone out there actually making any money?
I thought I wouldn't order a Personal Title to help offset the many thousands of pounds a month it costs to run PPRuNe. Nah... I'll just sit here and moan about it.
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Emirates made a record profit, enough to give 2 months profit share to its workforce. Check out their website for details.
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Mr Webster has just been on BBC Breakfast, looking, I have to say like he'd just crawled out of bed!!! What is it with low-cost management that they think it's ok to look scruffy for work???
Anyway, forgive the ramble - losses of £47m after tax....the BBC also said, before talking to RW, that there would be redundancies at HQ...!!! Anyone heard this ?
Anyway, forgive the ramble - losses of £47m after tax....the BBC also said, before talking to RW, that there would be redundancies at HQ...!!! Anyone heard this ?
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Tailscrape
Fair point but our creative accountants are no more! I wonder how many other companies have creative accountants or shall we all live in never never land and assume only MYT had the misfortune to have some dodgy accountants.
Time will tell!
Easy seem to have done OK all things considered. They at least did not have to try and give away 1000000 flights. Not Ryanair knocking but you have to ask how they manage such extraordinary profits at times like these?
Fair point but our creative accountants are no more! I wonder how many other companies have creative accountants or shall we all live in never never land and assume only MYT had the misfortune to have some dodgy accountants.
Time will tell!
Easy seem to have done OK all things considered. They at least did not have to try and give away 1000000 flights. Not Ryanair knocking but you have to ask how they manage such extraordinary profits at times like these?
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FR couldn't give away a million seats etc...
Well, excepting the revenue from inflight sales (which to someone booking a flight for free isn't going to be much - packed lunch ahoy!) FR aren't losing money if people don't fly on a free seat.
Why do FR have all these seats? Because they bought 738s which weekdays have spare capacity but are chocka at the weekend, rather than buying 73-700 and turning people away at peak.
For those who cackle the "million free seats" refrain, if FR can't give away seats but make money, and EJ don't give them away and lose money, what does that say about EJ yield management?
One does have to remember that the Buzz integration costs have not yet filtered through to FR's accounts, but at least the fish is landed, unlike Deutsche BA!
Well, excepting the revenue from inflight sales (which to someone booking a flight for free isn't going to be much - packed lunch ahoy!) FR aren't losing money if people don't fly on a free seat.
Why do FR have all these seats? Because they bought 738s which weekdays have spare capacity but are chocka at the weekend, rather than buying 73-700 and turning people away at peak.
For those who cackle the "million free seats" refrain, if FR can't give away seats but make money, and EJ don't give them away and lose money, what does that say about EJ yield management?
One does have to remember that the Buzz integration costs have not yet filtered through to FR's accounts, but at least the fish is landed, unlike Deutsche BA!
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Its Easy's costs that are the problem, not their revenues...
If you look at the airlines that are turning profits at present, its airlines that are hacking back costs, such as Aer Lingus and hopefully BA... those that don't are un profitable
If you look at the airlines that are turning profits at present, its airlines that are hacking back costs, such as Aer Lingus and hopefully BA... those that don't are un profitable
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Low Costs
How can Easys costs be high compared to the more established outfits. Surely F/C though paid well perform the maximum permissable hours and C/C costs are low. Is it then interest payments on a/c.
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LONDON (AFX) - easyJet PLC saw its seasonal losses widen following its
takeover of rival Go Fly, though the low-cost carrier also revealed an 11 pct
fall in air fares in the first six months of its financial year.
Reporting April yields down 3 pct year-on-year, the company said the outlook
for the remainder of the year remained uncertain.
While May revenue per flight was "tracking" last year"s levels, June is
currently weak.
There was however good news on the cost of integrating of the Go fleet,
which at 5.6 mln stg in the first half cost less than projected. But that was
offset by a 9.2 mln stg termination charge covering the break-up of its takeover
of Deutsche BA.
easyJet"s loss before goodwill amortisation and exceptional items was 24 mln
stg, which compared with an 8.3 mln deficit a year earlier, but much lower than
market estimates which ranged 35-49 mln.
"At this point in time it is too early to have visibility regarding the
financial outcome for the full year, as the strength of fares over our crucial
summer period is not likely to be clear for a couple of months," said chief
executive Ray Webster.
"However, we expect to maintain high load factors, albeit with yields
continuing to be under some pressure compared to last year, offset to an extent
by the reduction in the rate of growth of capacity which occurs in the second
half of the year."
takeover of rival Go Fly, though the low-cost carrier also revealed an 11 pct
fall in air fares in the first six months of its financial year.
Reporting April yields down 3 pct year-on-year, the company said the outlook
for the remainder of the year remained uncertain.
While May revenue per flight was "tracking" last year"s levels, June is
currently weak.
There was however good news on the cost of integrating of the Go fleet,
which at 5.6 mln stg in the first half cost less than projected. But that was
offset by a 9.2 mln stg termination charge covering the break-up of its takeover
of Deutsche BA.
easyJet"s loss before goodwill amortisation and exceptional items was 24 mln
stg, which compared with an 8.3 mln deficit a year earlier, but much lower than
market estimates which ranged 35-49 mln.
"At this point in time it is too early to have visibility regarding the
financial outcome for the full year, as the strength of fares over our crucial
summer period is not likely to be clear for a couple of months," said chief
executive Ray Webster.
"However, we expect to maintain high load factors, albeit with yields
continuing to be under some pressure compared to last year, offset to an extent
by the reduction in the rate of growth of capacity which occurs in the second
half of the year."
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What may be not widely realised is that in most years over the winter months, easyJet has traditionally made a loss, and combined with the Iraq war, the takeover of Go and the Sars virus, it is not at all surprising they still made a loss over winter this year. However, the takeover is complete, the virus is under control, the war is over, the economy is on the mend and I would be very surprised if easyJet did not make an excellent profit over the summer months.
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Congratulations to the management at Easyjet. Within six months they have managed to turn two profit making airlines into one much larger loss making airline.
Micheal O'Leary will be smoking a rather large cigar and having an extra pint of Guiness tonight, as he watches "Europe's biggest low cost airline", "the webs favourite airline", start down the slippery slope to bankruptcy.
The future is not looking so bright for orange right now
Micheal O'Leary will be smoking a rather large cigar and having an extra pint of Guiness tonight, as he watches "Europe's biggest low cost airline", "the webs favourite airline", start down the slippery slope to bankruptcy.
The future is not looking so bright for orange right now
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easy jobs losses!!!
We all have known for a while easy were losing money hand over fist and have announced job losses in adim and blaming various factors War SARS ect, for the losses, can easy keep going??
But do you really think that a few losses in admin are going to make up the short fall. Their total wage must be less than 6 or 7% of the total profit loss.
Me Thinks that Webster has bitten more than he can chew(ie buying GO) and the work force are going to pay the price Pilots and Cabin crew are the next to follow the admin out the door.
Base closures have to be on the cards as well cancelling new aircraft orders, routes ect and if they dont do that and still lay off people how can they justify that.
The city must be getting very nervy about thier money or the lack there of.
Webster and co have got it wrong big time but won't admit that its not thier fault!!!(but they got there big pay outs)
What they wont admit that the day to day operation is in chaos thats where ther lossing money they simlpy don't know what there doing AND THAT'S A FACT OF LIFE.
They can't even match up a crew and flight correctly for god sake!
But do you really think that a few losses in admin are going to make up the short fall. Their total wage must be less than 6 or 7% of the total profit loss.
Me Thinks that Webster has bitten more than he can chew(ie buying GO) and the work force are going to pay the price Pilots and Cabin crew are the next to follow the admin out the door.
Base closures have to be on the cards as well cancelling new aircraft orders, routes ect and if they dont do that and still lay off people how can they justify that.
The city must be getting very nervy about thier money or the lack there of.
Webster and co have got it wrong big time but won't admit that its not thier fault!!!(but they got there big pay outs)
What they wont admit that the day to day operation is in chaos thats where ther lossing money they simlpy don't know what there doing AND THAT'S A FACT OF LIFE.
They can't even match up a crew and flight correctly for god sake!
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profits and losses
when the two companies merged all staff did their very best,sop's were changed,company ethos was changed,colur was changed ,staff who use to eat , sleep and talk GO changed skin overnight (LOYALITY),but that was not the problem.
if only easy jet managment get off thier **** sides and try to do something with the company and listen to people who had made a profit in the past rather than listening to the echo of their voices which they love,only then they might make a difference.
get rid of RW and his deciples thats a good start.
if only easy jet managment get off thier **** sides and try to do something with the company and listen to people who had made a profit in the past rather than listening to the echo of their voices which they love,only then they might make a difference.
get rid of RW and his deciples thats a good start.
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Well said magoo!
With Morale rock bottom, people being farmed around the countryside in taxi's, not going into discretion, no flight plans (often), office staff hanging up on each other and inter company feuding it doesn't exactly sound like a good combination for making profit does it!
Some manager’s don’t need to be made redundant- they need to be sacked. RW included.
Until there is massive change at EJ and the ability to be flexible and open their eyes past their 1990s business model (don’t mention cargo!) EJ won’t survive.
Go changed a lot- some of that was in unhappy times- but it evolved. Keeping it's staff happy, kept the punters Happy. All we hear now is the cabin crew giving pax abuse back- because they simply can't be bothered.
Its not surprising the topic of conversation among staff at the moment is - "who is recruiting?"
Todays news is of little surprise.
With Morale rock bottom, people being farmed around the countryside in taxi's, not going into discretion, no flight plans (often), office staff hanging up on each other and inter company feuding it doesn't exactly sound like a good combination for making profit does it!
Some manager’s don’t need to be made redundant- they need to be sacked. RW included.
Until there is massive change at EJ and the ability to be flexible and open their eyes past their 1990s business model (don’t mention cargo!) EJ won’t survive.
Go changed a lot- some of that was in unhappy times- but it evolved. Keeping it's staff happy, kept the punters Happy. All we hear now is the cabin crew giving pax abuse back- because they simply can't be bothered.
Its not surprising the topic of conversation among staff at the moment is - "who is recruiting?"
Todays news is of little surprise.
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HZ123 - cabin crew costs are extremely high, they get paid incredibly well (for doing virtually nothing) but due to the c**p they have to put up with they don't stay long and are constantly having to be replaced. Pilots do nowhere near the maximum flying hours, only the max duty hours i.e it is quite normal for a pilot to fly say 2hrs in a 10 hr duty period. Hardly efficient, eh? 