easyJet achieves significant improvement in margins

easyJet expects pre-tax profit growth to be towards the top end of its earlier guidance of 40-50 percent. (10/8/2007)However, the airline said the total pre-tax profit for the year to the end of September will exceed earlier expectations, thanks to a one-off 11m boost from its investment in The Airline Group. “Yields for the second half, measured as total revenue per seat, were down 6.8 percent versus last year. This is in line with our guidance and reflects our commitment to offering Europe’s lowest fares to the most convenient airports. As we have previously stated, we will show substantial improvement in operating costs and second half unit costs, excluding fuel, will be reduced by around 10 percent,” state the airline. “We will continue to execute our stated strategy in the new financial year, adding 15 percent capacity and further improving return on equity. During the winter we expect total revenue per seat, including revenues from bag charging, to be broadly in line with last year.” Andy Harrison, easyJet Chief Executive said: “We are pleased with our performance over the last financial year having achieved significant improvement in margins despite the doubling of APD in the UK and record fuel prices. According to the airline, passenger growth remained strong for September, up 14.2 percent versus the same month last year.

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