easyJet profits fuelled by increased margins, passenger numbers

easyJet has delivered forecast-beating record profits boosted by higher margins and increased passenger numbers.

easyJet has delivered forecast-beating record profits boosted by higher margins and increased passenger numbers.

For the year ending September 30th, the budget airline increased total revenues 11.6% to £3.85bn (2011: £3.45bn). Pre-tax profits soared 27.9% to a record £317m (2011: £248m) and pre-tax profit margins grew one percentage point to 8.2%, despite a £182m increase in unit fuel costs.

Get your FREE guide to market crashes

What do past crashes teach us about this one? Subscribe to MoneyWeek now and get a free copy of the Little Book of Big Crashes, plus your first six magazine issues absolutely FREE

Analysts had expected earnings of £314m.

This outperformance was driven by a 5.5% capacity growth and a 1.4 percentage-point improvement in load factor to 88.7%. Passenger numbers rose 7.1% to 58.4m.

Advertisement - Article continues below

Total revenue per seat grew by 5.9% (7.5% at constant currency) to £58.51, driven by improved load factors; the annualisation of changes to fees and charges made in 2011; the careful targeting of capacity to markets with the strongest returns potential; improvements to easyJet.com; the success of the 'Europe by easyJet' campaign and from competitor capacity constraint in the market.

The company has decided to reduce the level of dividend cover from five times to three times and consequently it proposes to increase the dividend from 10.5p to 21.5p for the year ended September 2012.

Earnings per share grew 19% to 62.5p.




Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular


What does the coronavirus crisis mean for UK house prices?

With the whole country in lockdown, the UK property market is closed for business. John Stepek looks at what that means for UK house prices, housebuil…
27 Mar 2020

Coronavirus: what it means for your mortgage or your rent

Ruth Jackson-Kirby looks at all the key questions for owners, renters and landlords affected by the coronavirus crisis.
29 Mar 2020
Small business

Furlough: what does it mean and how does it affect me?

Many companies have “furloughed” employees after they have shut down because of the coronavirus. But what does furlough mean and how does the scheme w…
30 Mar 2020

Buy stocks for the long term, but buy very carefully

After the wild ride of the last couple of weeks, equities are no longer expensive. But if you do decide to buy, be very, very careful indeed, says Mer…
30 Mar 2020