Easyjet profits fall as it bids to become the world’s first “zero carbon” airline

EasyJet reported a fall in profits today, after a “difficult” year, but is hoping to become the first “zero carbon” airline by offsetting its carbon emissions at a cost of £25m a year.

Easyjet Airbus A20-200 © PASCAL PAVANI/AFP via Getty Images

EasyJet reported a fall in profits today, after a "difficult 2year driven by higher fuel costs, Brexit uncertainty and weakness in consumer confidence. Profit was still towards the top end of expectations, however.

Pre-tax profit fell 26% to £427m in the year to 30 September, down from £578 the previous year. Revenue rose by 8.3% to £6.385m and passenger numbers increased too by 8.6% in the 12 months to 30 September to 96.1 million but revenue per seat fell to just £60.81. With cost per seat including fuel at £56.74, the airline makes a just £4.07 per seat before tax. Dividend per share fell to 43.9p, down from 58.6p in 2018.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

In a bid to head off the rise of "flight shaming" slowly creeping cross Europe, Easyjet said it will become the world's first "zero carbon" airline. Offsetting carbon emissions will cost £25m in the next year. Chief executive Johna Lundgren says this is just an "interim measure", with the company "supporting the development of new technology including electric planes to reinvent aviation".

Easyjet is hoping to capitalise on the demise of tour operator Thomas Cook earlier this year by launching its own package holiday business offering"more than 100

Advertisement
Advertisement - Article continues below

amazing beach and city holiday destinations", which it says will be up and running before Christmas, with booking available for winter 2019 and summer 2020. Around 20 million people take flights with EasyJet every year, it says, but just half a million book accommodation with them.

It is not worried by Brexit, it says, despite admitting that uncertainty surrounding leaving the EU has contributed to its fall in profits. It boasts that it is in "a state of full preparedness for all possible Brexit outcomes", with air operators certificates in the UK, Switzerland and Austria, and 50% of its equity held by EU nationals.

Easyjet shareholders seem to be happy with the result.s The share price was up by almost 4% in today's early trading.

Advertisement

Recommended

Visit/517688/the-british-equity-market-is-shrinking
Stock markets

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Visit/516758/beyond-the-brexit-talk-the-british-economy-isnt-doing-too-badly
Economy

Beyond the Brexit talk, the British economy isn’t doing too badly

The political Brexit pantomime aside, Britain is in pretty good shape. With near-record employment, strong wage growth and modest inflation, there is …
17 Oct 2019
Visit/511212/reasons-for-investors-to-be-bearish-but-stick-with-the-stockmarket-bulls
Stock markets

There are lots of reasons to be bearish – but you should stick with the bulls

There are plenty of reasons to be gloomy about the stockmarkets. But the trend remains up, says Dominic Frisby. And you don’t want to bet against the …
17 Jul 2019
Visit/510684/good-news-on-jobs-scares-stockmarkets
Economy

Good news on jobs scares US stockmarkets

June brought the best monthly US jobs growth of the year, but stockmarkets were not best pleased.
11 Jul 2019

Most Popular

Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
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
Visit/investments/commodities/gold/600874/gold-is-at-its-highest-level-in-years-heres-how-to-invest
Gold

Gold is at its highest level in years – here’s how to invest

Gold's rise at a time when the dollar is unnervingly strong isn't unheard of – but it is curious. John Stepek explains what's going on, and what it me…
21 Feb 2020
Visit/investments/stocks-and-shares/share-tips/600843/share-tips-of-the-week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Feb 2020
Visit/517625/tr-european-growth-trust-why-investors-shouldnt-overlook-europe
Sponsored

Why investors shouldn’t overlook Europe

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, tackles investor questions around Europe’s economic outlook and the conseq…
6 Nov 2019