August 27 2014 Latest news:
Tuesday, March 25, 2014
Low-cost airline easyJet said today that it is now on course for a smaller than previouslyexpected loss this winter.
The Luton-based carrier, which is also a major operator at Stansted, has benefited from improved revenues trends and benign weather, which reduced levels of de-icing and disruption.
It now expects losses of between £55million and £65m for the six months to March 31, compared with guidance in January of £70m to £90m and a loss of £61m in the same period a year ago.
Chief executive Carolyn McCall said the performance showed the company’s structural advantage in the European short-haul market against both established carriers and low-cost competition.
She added: “Our strategy of offering our customers low fares to great destinations with friendly service and a focus on cost control ensures that we can continue to deliver sustainable growth and returns for our shareholders.”
Revenues per seat are expected to be 1.5% higher in the six months, driven by allocated seating, digital initiatives and longer average flights.
Costs per seat growth is likely to be around 0.5%, which is better than the guidance of 1.5% issued at the end of January.
Profits at easyJet in the last financial year to September 30 jumped 51% to £478m, with ongoing efforts to attract more business travellers meaning it flew more than 60m passengers in a year for the first time.
A Norwich-based business which started as a “man with a van” operation is eyeing further expansion after seeing its predicted turnover increase from £6,000 to £340,000 within five years.