easyJet announce record passenger numbers; raise profit expectations

07.08.05

No-frills airline easyJet upped full year profit forecasts yesterday, when it announced quarterly results. The company, which is the largest airline at Gatwick Airport, carried 18% more passengers on its planes last month than a year earlier.

easyJet brushed aside fears over the impact of the London bombings on its business, announcing that it had carried 2.85 million people in July. The news came on the same day that British Airways said passenger capacity on its planes had also hit a monthly record.

Chief executive Ray Webster said: 'The London terrorist bombings affected demand for inbound travel to London but, barring further incidents, are not expected to have a material impact on the result for the year.' Mr Webster said 20.6% more passengers were carried by easyJet in the 3 months April and June, and its planes were fuller than before.

The news came as the no-frills airline put investors on standby for profits of around £62.2m - in line with those last year - after showing fresh signs that it was winning the battle to offset higher fuel bills. The airline, which had previously told investors that it was unlikely to match its 2004 profits performance, said revenues were improving and it was maintaining a squeeze on costs.

Quarterly revenues rose 19.5% to £342.9m despite the timing of Easter this year, which meant the seasonal boost to business was reflected in the previous quarter. But the airline warned that the group's performance since the start of July had been affected by the continued rise in the price of oil and the weakness of the pound against the US dollar.

easyJet's annual fuel bill was expected to reach £260m, although the company said it was making better progress in stripping costs out from other parts of the business. Unit costs other than fuel fell by 2.6% in the quarter - faster than the 1.5% decline in the first half of the financial year.

Mr Webster said the negative impact of higher priced jet fuel and currency swings have been 'more than offset' by improvements in revenue mix, the addition of new routes and the decision not to impose fuel surcharges. 'In the current market, our already low fares are now even more attractive,' he said.

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