Easyjet has posted better-than-expected third-quarter revenue.
Investors were relieved by the performance, which came after Ryanair’s disappointing results.
Ryanair warned Monday that the ticket prices for summer travel would be “substantially lower” than last year.
EasyJet shares rose 28 3/4p or 6.7% to 456 1/2p during morning trading, as the company struck a positive note. The company reported that revenue from passengers increased by 7 percent to PS1.6 billion during the third quarter. The headline pre-tax profit grew 16 per cent in the three months up to the end June.
Johan Lundgren (57), easyJet’s chief executive, stated: “We are on track to deliver a record-breaking summer. This will bring us closer to our mid-term goals.”
EasyJet has not provided any guidance on the entire year, despite the positive tone.
Lundgren announced in June that he would be handing over his position as chief executive to Kenton Jarvis.
The results were strong despite the fact that Easter Sunday fell on the last day of March in this year. This pushed a number of profitable flights to the previous quarter.
Ryanair, on the other hand, reported a nearly halving in its post-tax profit to €360mn during the first quarter due to the timing of Easter. The airline suffered lower fares than expected, despite an increase of 10 percent in traffic to 55.5 millions customers.
EasyJet’s outlook is positive. The company expects to reach a full-year capacity around 100 million seats, and revenue per seat will continue the trend from the previous quarter. It stated that easyJet Holidays is now expected to generate more than PS180million in pre-tax profits, which represents a growth of nearly 50%.
The final quarter bookings continued to grow, with 69 percent of the total capacity sold. This is one point more than last year at this time and 7 percent more than before. EasyJet sold 1.5 million extra seats during peak summer than at the same time last year. Total yield was broadly flat.
The amount of capacity available for sale in the first quarter next year is up by 5 percent, with 20% of the program currently sold. This represents a 2 percentage point improvement year-on year.
The overall revenue for the third quarter increased by 11% to £2.6 billion. Airline ancillary revenue also increased by 11% to £693 millions. Holiday revenues increased by 42 percent to £336 millions. Fuel costs increased by 7 percent to £625 millions.
The total airline revenue per seat increased by 1 percent to £81.61. There were 156,487 flights in the third quarter on 330 aircraft. The number of passengers increased from 23,45 million to 25,32 million with a 90 per cent load factor.
Ryanair announced separately its latest “approved OTA (online travel agency) partnership” with Braganza.
Braganza, the parent company, is also the owner of Ticket, a Nordic online travel agency, and Escapeaway Tours, a tour operator. These businesses can now offer their customers low-cost Ryanair flights.
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