easyJet has delivered an improved first half financial performance driven by a strong focus on capacity allocation, a range of revenue initiatives and a stronger than expected cost performance.
Strategic Progress:
Drive demand, conversion and yields across Europe
· Total revenue per seat increased by 1.5% year on year on a constant currency basis, and by 2.6% per seat on a reported basis, to £54.80 driven, in part, by a number of digital and revenue management initiatives, increased average sector length and allocated seating.
· In the 12 months to 31 March 2014 easyJet carried 12 million business passengers for the first time.
· Average load factors increased by 0.4 percentage points to 89.0% whilst capacity grew by 3.6% to 31.1 million seats.
Maintain cost advantage
· Cost per seat excluding fuel grew by 0.5% on a constant currency basis and by 0.8% on a reported basis to £39.20. The planned year on year cost increases in maintenance and lease costs were offset by lower than expected levels of de-icing and disruption in the second quarter and by the early delivery of a number of easyJet lean initiatives.
· easyJet lean delivered £14 million of annualised savings in the six months to 31 March 2014.
Build strong number 1 and 2 network positions
· easyJet launched new bases in Naples, its third in Italy, and Hamburg, its second in Germany, bringing the total number of easyJet bases to twenty-four.
Disciplined use of capital
· In the six months to 31 March 2014, easyJet returned £308 million or 77.6 pence per share to shareholders through the payment of an ordinary dividend (at three times earnings cover) and a special dividend.
· easyJet ended the first half of the financial year with cash and money market deposits of £1,069 million, a decrease of £125 million against last year mainly driven by the special dividend payment. Net cash as at 31 March 2014 was £449 million compared to £433 million at 31 March 2013.
Commenting on the results, Carolyn McCall, easyJet Chief Executive said:
"easyJet has delivered a solid first half performance despite the less benign capacity environment. The results reflect our on-going progress against our strategic priorities, and demonstrate the structural advantage easyJet has against both legacy and low cost competition in the European short haul market.
By continuing to deliver our strategy of offering customers lower fares to great destinations with friendly service while focusing upon costs, we can continue to deliver sustainable growth and returns for our shareholders. There continue to be a number of attractive opportunities for easyJet to grow profitably in Europe and we look forward to making further progress in the second half of the year."
