7th Feb 2007 07:01
easyJet PLC07 February 2007 07 February 2007 EASYJET Q1 STATISTICS______________________________________________________ Three months ending Dec 2006 Dec 2005 Change Passengers (m)1 8.1 7.4 +9.8% Load factor2 81.7% 82.2% -0.5pp Total revenue3 (£m) 366.2 318.8 +14.9% Total revenue per seat4 (£) 36.79 35.38 +4.0% Average operating aircraft 114 101 +13.1% ASKs (bn) 9.5 8.3 +13.8% RPKs (bn) 7.8 6.8 +14.6% Average sector length (km) 952 923 +3.1% _____________________________________________________________________ Note: easyJet does not publish full quarterly results, but issues a tradingstatement for the first and third quarters as a supplement to its regularmonthly passenger statistics (see separate release for January statistics). The easyJet network continues to grow with five new routes launched in thequarter including the three times daily service between Glasgow and LondonGatwick. Total revenue in Q1 was up 15% year on year to £366m. The number ofpassengers flown grew 10% compared to the same quarter last year, largely due tocapacity increases in Italy and Switzerland, while load factors were broadly inline with the prior year. Total revenue per seat grew 4% with passenger revenueup 2.3% per seat and ancillary revenues, which continue to grow significantlyahead of capacity, up 22% per seat versus Q1 last year. Car rental andinsurance partner revenues were particularly strong and our "Speedy Boarding"product which gives boarding priority to a limited number of passengers on everyflight is now available across the easyJet network. In December, the treasury announced the doubling of UK Air Passenger Duty (APD)from 1st February 2007. The increase in APD raises over one billion pounds forthe Chancellor but is an ineffective environmental tax. APD does not coverfreight journeys by air and it does not differentiate between airlines inrecognition of their varying efficiency and environmental credentials. Forinstance, by investing in new aircraft, easyJet has been able to reduce itsemissions of CO2 per passenger kilometre by 18% since 2000, and compared to atypical European airline easyJet is 27% more fuel efficient per passenger5.Airlines generate less than 2% of global greenhouse gas emissions6 and easyJet'sfleet is among the most efficient in Europe. easyJet supports measures to bringaviation into the European Emissions Trading System (ETS) which is aninternational solution to an international problem. easyJet is working with theEuropean Commission to ensure that a well designed emission trading scheme isintroduced for the airline industry. We continue to monitor the impact of APDon our business. Outlook For Q2 we anticipate a slight increase in passenger revenue per seat comparedwith the same period last year, with ancillary revenues continuing to grow aheadof capacity. In spite of the fall in fuel prices from the summer highs, our average fuel cost(after hedging) for this first half will be approximately $650 per metric tonne,7% higher year on year (H1 FY06 avg fuel cost $606/MT). Continued progress onnon-fuel costs and revenues mean that we expect a pre-tax margin improvement inthe region of 3 to 4 percentage points for the first half. For the second half, we have 61% of our fuel requirement hedged, 39% usingforwards at an average rate of $659/MT and 22% hedged with collars having aweighted average floor of $699/MT and ceiling of $776/MT. For the full year weanticipate unit fuel costs to be slightly down year on year. Expected capacity growth for the year to September 2007 remains unchanged at15%. We anticipate pressure on yields in the second half due to highcomparatives following a strong summer last year and due to continuedcompetition. However, our focus on controllable costs and growth in ancillaryrevenues mean that for the full year we anticipate an improvement in profitbefore tax of between 40% and 50%. 1.Represents the number of earned seats flown. Earned seats include seats thatare flown whether or not the passenger turns up because easyJet is a no-refundairline, and once a flight has departed a no-show customer is generally notentitled to change flights or seek a refund. Earned seats also include seatsprovided for promotional purposes and to staff for business travel. 2. Represents the number of passengers as a proportion of the number of seatsavailable for passengers. No weighting of the load factor is carried out torecognise the effect of varying flight (or "stage") lengths. 3. Represents statutory revenue (unaudited). 4. Represents total revenue divided by the number of seats flown available forpassengers. 5. easyJet 2006 annual report and accounts 'Corporate and social responsibilityreport' available at www.easyJet.com. 6. The UK's Stern Review estimates that aviation emissions currently account for1.6% of global greenhouse gas emissions. END For further details please contact: easyJet plc Julia Collins, Investor Relations +44 (0) 1582 525 258 Toby Nicol, Corporate Communications +44 (0) 1582 525 339 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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