easyJet's passenger statistics for December issued this morning show that the momentum in the business continues. The load factor (number of seats flown as a percentage of the number of seats available) for the month was up 2.3 percentage points at 87.9% compared to 87.5% the year before. The rolling 12 month figure was 88.9% compared to 87.5%. The Company does not give figures for revenue but its revenue model is based on charging more for seats as the plane fills up so a higher load factor should mean greater profits, especially as once costs are covered the revenue from each additional seat sold drops to the bottom line.
The shares have doubled in value since I bought the holding for the JIC portfolio last January but I have no intention of selling it yet. It is valued at 11.7x for the year ending September 2013 falling to 10.1x to September 2014 for 17% earnings growth. It still looks good value to me.
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