REG - easyJet PLC - easyJet Trading Update and Pre-Close Statement <Origin Href="QuoteRef">EZJ.L</Origin>

easyJetAnnouncement

26/03/2015 07:12

RNS Number : 4845I
easyJet PLC
26 March 2015
26 March 2015
easyJet trading update and pre-close statement
for the six months to 31 March 2015

Outlook as at 27 January 2015 trading statement
Revised outlook
First half capacity growth1
c. +3.5%
c. +3.7%
Full year capacity growth2
c. +5.0%
c. +5.0%
First half revenue per seat (constant currency)1
c. +2.0%
c. +2.5%
First half cost per seat ex fuel (constant currency)1, 3
c. +2.5%
up to +3.0%
Full year cost per seat ex fuel (constant currency) 2, 3
c. +2.0%
up to +2.5% 
First half foreign exchange impact1
Favourable 10 million
Favourable 20 million5
Full year foreign exchange impact2
Adverse 20 million
Adverse 20 million5
First half unit fuel bill1 ,4
Favourable 30 million to
35 million6
Favourable 35 million
Full year unit fuel bill2, 4
Favourable 90 million to
130 million6
Favourable 90 million to
120 million6
First half result before tax
Loss of 10 million to
30 million
Loss of 5 million to a profit of 10 million
easyJet expects to deliver a first half performance ahead of the guidance given in the 27 January 2015 trading statement primarily due to the movement of exchange rates in the second quarter.
 
 Revenue per seat growth at constant currency for the six months to 31 March 2015 is now expected to be around 2.5%1; 
 Cost per seat at constant currency for the six months to 31 March 2015 is now expected to increase by up to 3.0%,1,3 due to higher levels of de-icing and disruption costs in the second quarter;
 As a result cost per seat at constant currency for the full year is now expected to increase by up to 2.5%2, 3;
 Based on a Euro : Sterling exchange rate of 1.3574 and a US Dollar : Sterling exchange rate of 1.4917 it is now expected that exchange rate movements are likely to have around a 20 million favourable impact in the six months to 31 March 20151 primarily due to the recent weakening of the Euro against Sterling;
 Using the same exchange rates, the first half favourable impact will reverse in the second half and it is expected that exchange rate movements are likely to have around a 40 million adverse impact in the second half. This will result in a 20 million adverse impact for the 12 months to 30 September 20152; 
 It is expected that easyJet's unit fuel bill for the six months to 31 March 20151 will be around 35 million favourable and for the 12 months to 30 September 20152 it is estimated that easyJet's unit fuel bill4 is likely to be between 90 million and 120 million6 favourable.
The Board's expectation is now for a pre-tax result for the six months ended 31 March 2015 of between a loss of 5 million and profit of 10 million compared with the previous guidance of a pre-tax loss of 10 million to 30 million and a prior year pre-tax loss of 53 million. easyJet has had a good first half of the year and second half bookings are in line with last year. However, further volatility around currency rates and the oil price is likely to continue into the second half.
Commenting on the pre-close statement, Carolyn McCall, easyJet's Chief Executive said:
"easyJet has performed well in the first half of the year and has continued to deliver its strategy of making travel easy and affordable for passengers. We continue to expect that lower fuel costs will be beneficial for our customers as fares adjust. easyJet continues to be well positioned to deliver sustainable returns to shareholders due to its compelling network, low cost base and strong balance sheet."
easyJet will provide further details on its performance in the six months to 31 March 2015 when it publishes its half year results on 12 May 2015.
Enquiries should be directed to:
easyJet plc
Investors:
Will MacLaren +44 (0) 7961 763 879
Media:
Paul Moore +44 (0) 7860 794 444
Edward Simpkins, Finsbury +44 (0) 7947 740 551
Fuel and foreign exchange hedging
Percentage of anticipated requirement hedged
Fuel requirement
US dollar requirement
Euro
surplus
Swiss franc surplus
Six months to 30 September 2015
82%
83%
81%
93%
Average rate
$908 /
metric tonne
$1.58
1.18
CHF1.47
Full year ending 30 September 2015
86%
84%
85%
99%
Average rate
$929 /
metric tonne
$1.59
1.18
CHF1.47
Full year ending 30 September 2016
Average rate
71%
$869 /
metric tonne
70%
$1.64
64%
1.22
57%
CHF1.46
1Movement compared to six months to 31 March 2014.
2 Movement compared to 12 months to 30 September 2014.
3This does not include an additional navigation charge from Eurocontrol which easyJet is currently disputing.
4Unit fuel calculated as the difference between latest estimate of FY'15 fuel costs less FY'14 fuel cost per seat multiplied by FY'15 seat capacity.
5 Spot rates at 25 March 2015: US $ to  sterling 1.4917, euro to  sterling 1.3574. 
6 Based on jet fuel remaining within a $550 metric tonne to $750 metric tonne trading range.

This information is provided by RNS
The company news service from the London Stock Exchange
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