EasyJet to reduce winter losses by £25m

EasyJet to reduce winter losses by £25m

EasyJet expects to trim traditional winter losses by at least £25 million due to an improved performance in the half year to this month.

The budget carrier expects a pre-tax loss for the six months to March 31 of £55 million/£65 million compared with previous guidance of a loss of £70 million/£90 million.

The airline made a pre-tax loss of £61 million in the same period last year.

Revenue per seat growth at constant currency for the six months to March 31 is expected to be around 1.5%, the airline said in a trading update this morning.

This has been partly driven by the introduction of allocated seating, increased average sector length and a number of “digital and revenue management initiatives”.

Cost per seat growth excluding fuel at constant currency is expected to be 0.5%, which is better than the guidance issued in January, driven by a “benign winter” with reduced levels of de-icing and disruption in the three months to March 31.

As previously signalled, last year Easter fell on March 31 resulting in £25 million of additional revenue in the first half of 2013. In this financial year Easter will fall in the second half on April 20.

Chief executive Carolyn McCall said: “EasyJet has continued to execute its strategy delivering another good performance in the first half of the year.

“This performance demonstrates our continued focus on cost and progress against all our strategic priorities.

“It also demonstrates easyJet’s structural advantage in the European short-haul market against both the legacy and low-cost competition.

“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.”

Further details on the airline’s performance in the half year to March 31 will be given when it publishes half-year results on May 13.

Sourced from Travel Weekly

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