EasyJet Losses Narrow, Sees Sales Grow

 

EasyJet Losses Narrow, Sees Sales Grow EasyJet said seasonal first half losses narrowed, helped by cost cutting initiatives and minimal weather-related disruption, and that it expected second half revenues to grow by up to 5 percent.

Europe’s second-largest low-cost carrier on Wednesday posted a pre-tax loss of GBP£112 million (USD$180.75 million) in the six months to the end of March, 27 percent lower than the loss it made in the same period a year earlier.

EasyJet said losses were reduced due to careful capacity allocation, revenue initiatives and tight cost controls, combined with low levels of disruption compared to previous years, and came despite an GBP£87 million increase in fuel costs.

EasyJet typically makes a loss in the first half of the year, which does not include the key summer period.

Earlier this year easyJet predicted a first-half loss of GBP£110 million to GBP£120 million, down from previous estimates of GBP£140 million to GBP£160 million.

“Capacity, measured in seats flown, for the second half of the year, is planned to increase by 7 percent assuming no significant disruption, giving an increase of around 5 percent for the full year compared to 2011,” the airline said.

“Second half total revenue per seat at constant currency is expected to be up in the low to mid single digit range.”

The Luton, southern England-based company said revenues increased 16 percent to GBP£1.46 billion, while passengers flown grew 5.4 percent to 25.2 million, as it continued to grow its share of the short-haul business travel market.

EasyJet, the largest airline at London’s Gatwick airport, said revenue per seat grew 12 percent in the half and that it had already bought 77 percent of its required fuel for the second half.

(Reuters)



Privacy policyContact us | Advertise with us