Easyjet delivers "robust financial performance” as revenue and passenger numbers increase

EasyJet, the British low-cost airline carrier, has reported “a robust financial performance” for the first six months of 2016.

During this time, the airliner saw its biggest-ever ski season which resulted in an increase in revenue to £1.8bn, as passenger numbers grew to 31 million.

Easyjet also reported a decrease in revenue per seat by 4.2% year-on-year on a constant currency basis, and by 6.6% per seat on a reported basis to £51.29.

Cost per seat excluding fuel grew by 0.5% and decreased by 4.3% including fuel, on a constant currency basis. Total cost per seat decreased by 5% on a reported basis to £51.98.

The decrease in cost per seat was driven by lower fuel costs. Increased disruption costs mainly due to terrorism events were offset by benefits from fleet up-gauging and easyJet lean initiatives.

Easyjet opened two new bases in Venice and Barcelona, and exited the Fiumicino base ahead of plan, redistributing aircraft to secure better returns. The first seasonal base in Palma de Mallorca will open in Summer 2017.

In the six months to 31 March 2016, EasyJet returned £219m (or 55.2 pence per share) to shareholders via ordinary dividends at a payout ratio of 40% for the year ended 30 September 2015.

Carolyn McCall, EasyJet chief executive, said: “easyJet has delivered a robust financial performance during the half year despite the well-publicised external events.

“Underlying consumer demand has been strong with UK beach traffic providing a healthy start to the half and easyJet’s biggest-ever ski season helping to deliver increased passenger numbers and higher revenue during H1.

“Consumers have enjoyed lower fares, which have decreased by 6% year-on-year, the second successive year of falling fares, as the benefits of lower fuel costs are passed on to passengers. Active cost control by the airline has helped maintain margins.

“This performance is a clear demonstration of the strengths of easyJet’s unique combination of Europe’s leading network coupled with friendly service, low fares, and digital and data leadership.

“We are confident that over the full year we will again grow passenger numbers, revenue and profit. As a result of easyJet balance sheet and the Boards confidence in the future success of the business, the annual dividend payout ratio will increase by a quarter to 50% subject to AGM approval.”

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