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Not particularly “dismal”. The last normal winter before Covid they had a winter loss of £272 million. Certainly lots of room for improvement going forward but then again easyJet’s net debt position is far better than it’s competitors (and improving). Headline figures don’t always paint the full picture.
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Very few airlines make any money in the winter. The markets seem OK with it which is what is important. They paid back a £500m bond in the period and net debt is almost nil now.
Good foundations moving forward now into more profitable months. |
The markets seem OK with it which is what is important. |
Come back Caroline, All is forgiven!
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What's the profit per A320/B737 airframe for Easyjet, Jet2 and Ryanair ? If Easyjet can get this number up, the share price should follow
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I think it's more a case of come back Cath Lynn, who was the Group Commercial Director. It's progressively lost its way in the five years since she went.
Different financial year ends, but taking the half-year reports for easyJet, they made roughly £350m last summer and lost £411m this winter so annualised loss to 31/3/23 of £61m with 328 aircraft - loss of about £200k per aircraft. Ryanair forecasting profit of E1.325bn to 31/3/23 so £1.15bn with 523 aircraft = £2.2m profit per aircraft. Jet2 guiding towards a profit of about £390m to 31/3/23 with 106 aircraft = £3.7m profit per aircraft. A P&L improvement of £2.5m per aircraft for easyJet to pull them into the same ballpark doesn't sound like much of a stretch, but the problem is that if you're working on about £18m revenue per aircraft, that's quite a big shift when you've also got to achieve that with all 328 aircraft in the fleet. |
I suspect that part of the issue is the collapse in business travel which was a substantial part of their income. They made a big deal about their hubs in major airports.
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Go back 10 years, 5 even, the airline mix in the UK was quite different. You had Ryanair and EasyJet as your key low-cost players, Thomson/TUI and Thomas Cook as the mainstream package holiday providers and the likes of Jet2 and Monarch as smaller, more hybrid outfits.
Now that position has fundamentally changed. Ryanair is the single key low-cost carrier, Jet2 and TUI are the main leisure/package holiday providers (but I think it's fair to say one seems in a much stronger overall position than the other) and now EasyJet is the one in more of the hybrid position. The main question for me as an investor now would be what is it EasyJet are trying to be? It's clear they can longer compete on cost with the so-called 'ultra LCCs', so is it now all about EasyJet Holidays, or will they re-focus more on business travel as that re-bounds? They still have quite a stronghold on UK domestic and some good slot positions in major European hubs, but that alone is not going to be sufficient to drive longer-term strategic growth. The problem I see with them attempting a more hybrid model is they won't be able to compete on specifically tailored products or the right kind of route network/schedule with the more specialised providers. History tells you those trying to attempt too much scope, or lack focus on the market they're trying to serve, often doesn't end well. I'm not saying EZY is at the end of the road, far from it, but they will need to find what it is they are trying to be I think if they are to continue as a leading, independent airline. |
Interesting how much focus their appears to be in these accounts on the success of easyJet holidays - 80% sold for the summer and a forecast £80m profit and expanding it to Switzerland.
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That's what the board gets appointing an ex TUI guy, but he couldn't get Air Berlin right so that has cost Easyjet dearly. Can't fight LH in their own back yard, even RYR know that.
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Ryanair have an interesting slide in their accounts released today. It compares their costs with competitors and EasyJet are massively behind.
For example, Ryanair pay an average airport fee of €7 per pax whereas easyJet pay €28. Ryanair also suggest easyJet pay double in terms of aircraft ownership and maintenance and staff costs in € per pax. They both have similar revenues per passengers. Interesting challenges for easyJet in how to address that? |
Originally Posted by cavokblues
(Post 11438428)
Ryanair have an interesting slide in their accounts released today. It compares their costs with competitors and EasyJet are massively behind.
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Both PLC's so any good accountant can extrapolate the info (or make a decent estimate of it) from the accounts.
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Interesting discussion about easyJet. Given that they operate a high proportion of their routes to/from major airport hubs like LGW/CDG/ORY/AMS it's little wonder their average cost is so much higher.
Given an inferior cost positioning to Ryanair, I'd guess the strategy will be to focus on hub airports where they can mop up slots and keep Ryanair out. LIS is an example, easyJet got awarded a nice batch of slots and the limiting factor of slot availability protects easyJet from Ryanair to a large extent. The mentioned airports above all as places looks GVA where FR do not fly give them a degree of insulation. The UK where I would suggest people prefer easyJet to Ryanair, they likely can compete at airports like MAN/LPL/EDI etc. Business travel will continue to recover. That will help. But I believe it's only a matter of time until Wizz and easyJet tie the knot. |
I'm not sure you could find a room for potential merger talks which would be big enough to house all of the egos for that one. I don't see it myself, but I do agree that until or unless easyJet manage to get their share price back up again, they are definitely a take-over target.
The Ryanair figures yesterday just go to show the true extent of the gap. Yes, easyJet's costs at major airports will be far higher and that's inevitable - but the point of being in those major airports is that your revenue base should also be higher, so your margin should be at least as strong. It very clearly isn't. The easyJet figures are available from their own management presentations and data so are definitely "public domain", which Ryanair reference in their presentation. Crew costs are interesting. For as long as easyJet keep doing things like flying overnight MAN/DLM/MAN on Saturdays getting back at 5am on Sundays, which takes a crew out for pretty much three whole days, then easyJet's crew-to-aircraft ratio will be a lot higher than Ryanair's. They look to have an increasing number of days where three sets of crew are needed for one aircraft and I can't think that ever happens in Ryanair. On the face of it, it looks very much like poor planning and management of capacity - which is where I happen to think a lot of easyJet's problems lay. |
Originally Posted by Albert Hall
(Post 11438986)
I'm not sure you could find a room for potential merger talks which would be big enough to house all of the egos for that one. I don't see it myself, but I do agree that until or unless easyJet manage to get their share price back up again, they are definitely a take-over target.
The Ryanair figures yesterday just go to show the true extent of the gap. Yes, easyJet's costs at major airports will be far higher and that's inevitable - but the point of being in those major airports is that your revenue base should also be higher, so your margin should be at least as strong. It very clearly isn't. The easyJet figures are available from their own management presentations and data so are definitely "public domain", which Ryanair reference in their presentation. Crew costs are interesting. For as long as easyJet keep doing things like flying overnight MAN/DLM/MAN on Saturdays getting back at 5am on Sundays, which takes a crew out for pretty much three whole days, then easyJet's crew-to-aircraft ratio will be a lot higher than Ryanair's. They look to have an increasing number of days where three sets of crew are needed for one aircraft and I can't think that ever happens in Ryanair. On the face of it, it looks very much like poor planning and management of capacity - which is where I happen to think a lot of easyJet's problems lay. Ryanair have always been home and in bed by 1am, easyJet less so but highlighting the MAN DLM which, like you say, is only once weekly, and a former TCX slot isn’t a particularly representative argument. Those type of flights are few and far between in the greater scheme and are restricted to the U.K. AOC. It also doesn’t take a crew off roster for three days. They tend to be similar to extended FDP flights to TLV, SSH and HRG, the latter two being ‘trips’ this summer but which will bolster resilience. I don’t tend to take much notice of financial analysis if I’m honest, more of an operational person, interesting nonetheless and suffice to say the share price is being stubbornly stuck around the £5 mark. |
I find airline financials fascinating.
Ryanair also say they will be growing faster than easyJet over the next few years - up to 660 aircraft by end of 2027 vs up to 380 aircraft for easyJet by end of 2026. If you are an investor seems to be a no brainer who to go with as one company is promising to deliver more profit and faster growth. Interesting challenges ahead for the orange company. |
New W23/24 routes set to be announced on Thursday, wonder if any surprises?
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Former IAG Strategy Director Robert Boyle has written about easyJet and Ryanair's results and their relative cost performance:
https://www.gridpoint.consulting/blo...ropes-airlines |
Originally Posted by SKOJB
(Post 11439114)
New W23/24 routes set to be announced on Thursday, wonder if any surprises?
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Originally Posted by nguba
(Post 11439288)
Former IAG Strategy Director Robert Boyle has written about easyJet and Ryanair's results and their relative cost performance:
https://www.gridpoint.consulting/blo...ropes-airlines |
ALC
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Originally Posted by ib26uk
(Post 11439294)
Hopefully the official list of new routes from their Birmingham base...
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Originally Posted by fanrailuk
(Post 11439496)
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I’d like to think that BHX, NCL and SEN would be pretty certain. Hopefully. And SOU could be high up on that list.
I do wonder how much of it is just going to be re-distribution of existing routes to a lower cost base from ALC, but we shall see. There should be some new routes. Maybe BOH, STN and LBA will get a look in? It’s got to be pretty impossible NOT to consistently fill a flight from any UK departure point, to ALC or PMI. JER, IOM? Feeling brave (jk) |
A bit of a presumption of any of these. Press release only talked about one UK airport EDI as being key. This will benefit slot restricted airports across Europe before any fan routes from SEN or SOU.
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Originally Posted by pabely
(Post 11439649)
A bit of a presumption of any of these. Press release only talked about one UK airport EDI as being key. This will benefit slot restricted airports across Europe before any fan routes from SEN or SOU.
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Originally Posted by pabely
(Post 11439649)
A bit of a presumption of any of these. Press release only talked about one UK airport EDI as being key. This will benefit slot restricted airports across Europe before any fan routes from SEN or SOU.
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SOU-sun routes apparently on the way for S24, so no doubt the new ALC base will help with that.
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Originally Posted by pabely
(Post 11439649)
A bit of a presumption of any of these. Press release only talked about one UK airport EDI as being key. This will benefit slot restricted airports across Europe before any fan routes from SEN or SOU.
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easyJet announces further expansion plans with a new seasonal base in Alicante Operational from spring 2024, the three aircraft new base will create approximately 100 direct job and support many more indirect jobs
Javier Gándara, easyJet's Country Director for Southern Europe, commented: "We are proud to announce another new seasonal base in Spain, a strategically important market where we continue to grow, boost tourism and create jobs. Alicante is a very attractive destination and we believe that having a base offers great potential to expand our operations in the country, as well as allowing us to improve connectivity to and from the region. With this base we can bring the residents of Alicante closer to European cities of reference and, in turn, we strengthen Alicante’s position on the international tourism map." The move for further expansion comes following the airline’s plans to open a year-round UK base in Birmingham, where it will also base three aircraft from next spring as part of its strategy to take advantage of key growth opportunities across its network. Investing in a third seasonal base in Spain strengthens easyJet’s network by positioning it as the carrier of choice to serve consumers and capture the continued demand for travel, further growing its share of the leisure market for both the airline and easyJet holidays customers, for who Alicante has long been a popular summer leisure destination. Alicante joins the airline's seasonal bases in Palma de Mallorca (2017) and Malaga (2021) and Faro (2021), all strategic summer destinations for the airline and amongst the most popular on easyJet's network. Since easyJet started operating from Alicante in 1999 with a first route linking the port city with London Stansted, the airline has carried 27.5 million passengers to and from Alicante and is the 2nd largest international airline at the airport. https://mediacentre.easyjet.com/stor...se-in-alicante |
Originally Posted by Albert Hall
(Post 11439686)
SOU-sun routes apparently on the way for S24, so no doubt the new ALC base will help with that.
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New Route - LGW-Akureyri (North Iceland) from 31st October TUE/SAT - On sale now
This is an AMAZING part of the world for anyone looking for something unique and still unspoilt - truly the real Iceland (and better than the South for Northern Lights spotting too!) |
Originally Posted by RW20
(Post 11439730)
A big assumption!,There are many Uk airports including EDI that could be named,but SOU must be in the frame,difficult to know what other aurline would benifit from SOU given there restricted opening hours,certainly there will not be any based aircraft.
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SOU-GLA also a new route with EZY
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And Belfast as well.
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Credit goes to SeanM for his incredible twitter account
This is the list of routes launched today by easyJet ----------------------------------------------------------- Basel - Enfidha Basel - Funchal ---------------------------------------------------------- Belfast - Southampton ---------------------------------------------------------- Paris CDG - Birmingham Paris CDG - Pisa Paris CDG - London Southend Paris CDG - Agadir ---------------------------------------------------------- London Luton - Enfidha ----------------------------------------------------------- Lyon - Birmingham ----------------------------------------------------------- Nantes - Lanzarote ------------------------------------------------------------ Bristol - Marrakesh ------------------------------------------------------------ London Gatwick - Akureyri ------------------------------------------------------------ Glasgow - Southampton ------------------------------------------------------------- Manchester - Grenoble -------------------------------------------------------------- |
I’m so glad to see SeanM’s work being appreciated. So many tried to savage his early posts. IMO he posts early and accurate data that adds much to this forum.
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These new route announcements from EasyJet get more and more baffling each season and re-affirm at lot of what been pointed out only slightly up thread.
It's clear there is an intent on growing and diversifying the EasyJet holidays offering with the likes of Enfidha, Funchal and Akureyri. On the contrary they add the likes of SOU-GLA and BFS on extremely limited frequency and odd timings. Who are they attempting to target with this and what kind of yield can the realistically expect? I get they could just be testing the waters but you're not going to get a realistic consumer response on such a limited schedule. Surely these aircraft can be put to better use on deepening the frequency of existing core domestic routes? The CDG-BHX on a daily frequency is a good addition but as to why they've launched 4x weekly CDG-SEN over a STN service I will never know! I expect a lot of backlash from that comment, but I think I've always given fair and realistic contribution here. SEN does well on the bucket and spade, leisure routes (it just needs quite a few more of them) and I'm sure the AMS-SEN service will attract enough of a local catchment in addition to their core London schedule. They're massively restricting their potential market on CDG though with this limited frequency SEN service. That's a route that should easily sustain at least a daily STN frequency. Also surprised GVA hasn't yet returned for winter to either SEN or STN. |
EasyJet have absolutely no presence at STN while at SEN they are the only carrier.. makes much more sense to fly out of SEN where they have a monopoly
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