LONDON--Budget airline easyJet PLC (EZJ.LN) Tuesday posted a 51%
rise in fiscal 2013 pre-tax profit, driven by a 11% increase in
revenue and highlighting the company's focus on yield over fierce
price-cutting, but it warned the situation in Egypt, together with
a later Easter would reduce first half revenue per seat.
Instability in Egypt will reduce first-half revenue per seat
growth at constant currency by 0.7 percentage point, and the
movement of Easter into the second half of the year would reduce
first-half revenue per seat growth at constant currency by a
further 1.5 percentage points, easyJet said. It therefore expects
revenue per seat at constant currency for the first half of the
financial year to be only slightly higher than a year earlier.
Net profit for the year to Sept. 30 was 398 million pounds ($641
million), compared with GBP255 million a year earlier. Revenue rose
to GBP4.26 billion from GBP3.85 billion, while fuel costs rose
slightly to GBP1.18 billion compared with the year-earlier
period.
Profit before tax rose 51% to GBP478 million from GBP317 million
last year, slightly above with analysts' consensus of GBP475
million. A dividend of 33.5 pence has been proposed, up from 21.5p,
and a special dividend of 44.1 pence has been declared.
"EasyJet has delivered a strong full-year performance and made
significant progress against executing its strategic priorities,"
said Carolyn McCall, easyJet chief executive, adding that the
airline is well placed to continue to deliver sustainable returns
and growth for shareholders.
The airline said it would grow capacity in seats flown by around
3.5% in the first half of fiscal 2014, comprising the winter
months, and 5% for the full year. Revenue per seat over the first
half and full year is expected to be up by 2%.
EasyJet's comments are in stark contrast to those of rival
low-cost carrier Ryanair Holdings PLC (RYA.DB), which slashed its
full-year profit outlook by 12% earlier this month. Michael
O'Leary, Ryanair's chief executive, blamed weak pricing and demand
as extra capacity, led by fast-growing carrier Norwegian Air
Shuttle ASA, came into the market.
Mr. O'Leary also wants to attract more business travellers, a
key market for easyJet which has grown business traffic to around
10 million of its annual 60 million passengers over the last five
years by offering reserved seating and priority booking.
Both carriers are in the process of replacing and expanding
their fleets with new more fuel-efficient planes, allowing them to
fly further. EasyJet ordered a total of 135 single-aisle jet liners
from its long-standing supplier, European Aeronautic Defence &
Space Co.'s Airbus, in June. Ryanair is in talks with Airbus rival
Boeing Co. to buy more than a hundred 737 MAX jets on top of an
order for 175 737-800 planes.
EasyJet shares closed Monday at 1256 pence, valuing the company
at GBP4.98 billion.
Ian Walker contributed to this article.
Write to Marietta Cauchi at marietta.cauchi@wsj.com
Order free Annual Report for easyJet Plc
Visit http://djnweurope.ar.wilink.com/?ticker=GB00B7KR2P84 or
call +44 (0)208 391 6028
Order free Annual Report for Ryanair Holdings Plc
Visit http://djnweurope.ar.wilink.com/?ticker=IE00B1GKF381 or
call +44 (0)208 391 6028
Order free Annual Report for European Aeronautic Defence &
Space NV
Visit http://djnweurope.ar.wilink.com/?ticker=NL0000235190 or
call +44 (0)208 391 6028
Order free Annual Report for Norwegian Air Shuttle ASA
Visit http://djnweurope.ar.wilink.com/?ticker=NO0010196140 or
call +44 (0)208 391 6028
Order free Annual Report for The Boeing Co.
Visit http://djnweurope.ar.wilink.com/?ticker=US0970231058 or
call +44 (0)208 391 6028
Order free Annual Report for easyJet Plc
Visit http://djnweurope.ar.wilink.com/?ticker=US2778562098 or
call +44 (0)208 391 6028
Order free Annual Report for European Aeronautic Defence &
Space NV
Visit http://djnweurope.ar.wilink.com/?ticker=US29875W1009 or
call +44 (0)208 391 6028
Order free Annual Report for Ryanair Holdings Plc
Visit http://djnweurope.ar.wilink.com/?ticker=US7835131043 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires