EASYJET PROFITS RECOVER
ABOVE: Profits for Easyjet
18th November 2009
By Bill Martin
EASYJET yesterday trumpeted its success in being one of the few European airlines to make profits last year, even though they plummeted 65%.
The no-frills airline’s chief executive Andy Harrison hailed an “extremely resilient” performance as underlying pre-tax profit fell from £123 million to £43.7 m for the year to September.
The main reason for the drop was a £98.5 m hike in fuel costs, the result of the airline buying fuel in advance when prices were high, so the airline did not benefit from the subsequent drop in oil.
EasyJet shares fell 141⁄4p to 378p.
But revenues rose 13% to £2.67 billion as the airline targeted passengers from traditional airlines, such as British Airways, Alitalia and Iberia – with numbers up 3.4% to 45.2 million.
“We are one of the very few European airlines to make a profit during the past 12 months,” said Harrison.
He warned the winter would be tough in the face of rising unemployment, but was confi dent further cost savings and other efficiency improvements, alongside a £1 bn cash pile, would ensure the airline could continue to grow.
Harrison expects the loss on fuel to be reversed next year, leading to a £100m boost from cheaper prices.
EasyJet would make a “substantial profit improvement” in 2010.
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