Easyjet flying High

[Bluebaron]

From the BBC:

Easyjet has thanked the "resilience" of its business model for a 21% rise in annual profits, despite the pressure of high oil prices and tough competition.
The low-cost carrier saw its pre-tax profit increase to £62.2m ($115m) for the 12 months to the end of September, on revenues up 17% to £1.09bn.

Passenger numbers were up one-fifth to 24.4 million for the Luton-based firm.

Easyjet warned that the festive period would be "challenging", but said it was confident of ongoing growth in 2005.

"These are creditable results in challenging market conditions which have affected all airlines," said Easyjet chief executive Ray Webster.

"Both financially and operationally we are stronger than we have ever been before, and despite the high fuel price and degree of competition in the market we are well placed for the coming year."

Easyjet's shares were up 3.5p or 1.9% to 186.75 in early Tuesday trading.

The firm, which last month saw Iceland's national carrier Icelandair buy an 10.1% stake, saw its load factor - the percentage by which its planes are full - increase to 84.5% from 84.1%.

We're delighted that at least someone recognises the underlying value of the airline Easyjet boss Ray Webster on Icelandair's investment

Easyjet said that the twin pressures of high oil prices and tough competition from other budget airline rivals such as Ryanair were "beyond its control".

Total revenue per passenger fell 2% to £44.82 due to increased competition, but the increases in passenger numbers and load factors overcame this decline.

Easyjet said it was successfully offsetting negative factors by its strong focus on keeping operational costs as low as possible.

"There are good opportunities for us in 2005," added Mr Webster.

"We expect to grow our sales through further enhancing our network and growing ancillary revenues."

Cautious expansion

During 2004, the company expanded to 92 aircraft, 153 routes and 44 airports.

However the firm announced in September it would cut back its fleet expansion plans to 16% next year, instead of 24% as previously planned.

Easyjet's profits came in just ahead of market expectations.

Mr Webster said he had "no idea" if Icelandair plans to increase its stake in the airline.

"I have no idea, (but) we're delighted that at least someone recognises the underlying value of the airline."

Mike Powell, aviation analyst at Dresdner Kleinwort Wasserstein, said Easyjet's results were in line with its expectations.

"Overall our forecast remains unchanged and we are sticking with a hold rating for Easyjet's shares," said Mr Powell.

"A lot hangs on what happens with the Icelandair situation and whether it makes a takeover bid for Easyjet. We don't however think this will happen."


All this and i sold my shares a few weeks back at 172 and now they are 192, still brought at 120 so not all bad


:D

BB :ok:

[dontdoit]

Looking not so good for the future, if the analysts are to be believed: http://uk.biz.yahoo.com/z/e/ezj.l.html

[Norman Stanley Fletcher]

Absolute rubbish. The future seems pretty orange to me. There are a shed load of companies out there, including British Airways, who would just love to post results like this. All those whiners who continually want to knock what easyJet (and Ryanair) are doing should look at the facts - both of these companies are doing very well.

No company has a guaranteed right to exist and easyJet are in no way resting on their laurels. Nonetheless you would be hard put to find a company that is more predatory and up for the fight than them. The last few years have been a terrible time to be in the airline business, but despite the Gulf War, high fuel prices and cut-throat comptetion easyJet are making it happen.

I made the decision to join easyJet earlier this year and nothing I have seen today makes me anything else other than very glad I work here. I would never knock my previous employer but there is a real buzz about working for easyJet and I am very glad to be part of it.

[CaptJ]

Anybody interested, go to the easyjet website and watch the webcast presentation and the question and answer session.

http://www.easyjet.co.uk/EN/Investor/investorrelations_introduction.html

Some quite interesting detail in there.

A rather better communication performance than previous attempts too.

[ebenezer]

Well said Fletch!

It's obviously, still irritating some of the 'doom and gloomers' out there that easyJet, Ryanair et al, are still going strong, still moving the punters, and still posting reasonable figures.

You've only got to read the anticipatory glee with which the earlier post on WizzAir was met - until the rumour was proved inaccurate.

What most of these Jonah's have failed to grasp is that in Europe, the future is lo-co, not overpricing and under-utilisation!

These carriers have both proved there's a market and have also generated a market: even if one went to the wall, others would pick up the the business - others that is, apart from the likes of BA, Air France, etc., who prefer not to 'demean' themselves.

Still, one airline's loss is another airline's gain...

:ok:

[fiftyfour]

Seven or eight years since start up, but still no dividend yet.

[Wee Weasley Welshman]

Fast growing companies commonly don't issue dividends instead focussing on share price growth potential. With revenues now exceeding £1bn inside of 9 years this has clearly been easyJets financial strategy post flotation.

Cheers

WWW

[Final 3 Greens]

Its good to see a British company doing well.

In fact, my only issue with the posts here is the description of easyJet as a loco, when it is patently not for many people. A quick analysis of routes vs Ryanair will show that.... and yes, I know that easy fly to proper airfields.

For the last year, BA have often been around the same point or slightly less for the quotes I've obtained, so Ebenzer's quote seem a little odd.

Well done easyJet, a lot of people like the product, regardless.

[ALLMCC]

Quote " its good to see a British company doing well"

Ok, so they trade as a british PLC but are they not still essentially under Greek control?

[Final 3 Greens]

ALLMCC

:confused: I suppose that BA are under Australian control then?