EASYJET REPORTS RECORD PROFITS, UP 56% TO £129M 

easyJet Press Release 14/11/06

Posted with express permission of the easyJet Press Office

Preliminary results for the 12 months to September 2006

Record profit before tax of £129 million, up 56% from £83 million in 2005. 

Passenger numbers rise by 11.5% to 33 million.

Passenger revenues increased by 5.9% or £2.13 per seat, driven by strong 
summer trading.

Ancillary revenues improved significantly in all areas rising by 34% or 
£0.86 per seat.

Unit costs excluding fuel fell by 1.5% or £0.42 per seat from £28.78 to 
£28.36.

Unit fuel costs increased by 33% or £2.48 per seat.

Return on equity increased to 10.1% up 3 percentage points from 7.1% in 
2005.

58 new routes and 11 new destinations were launched, expanding the network 
to 262 routes and 74 airports in 21 countries.

Fleet grown to 122 aircraft with an average age of 2.2 years, making it one 
of the most modern and environmentally friendly fleets in Europe.

Further expansion of fleet planned with 52 new A319s ordered, and options 
secured over a further 75.  This brings the total number of aircraft on 
firm order to 104 worth over $4 billion, with a further 123 unexercised 
options still available.

Strong balance sheet with cash of £861 million.

Commenting on the results, Andy Harrison, easyJet Chief Executive said:

"2006 was another year of successful growth with 33 million passengers 
choosing to fly easyJet, attracted by our winning combination of low cost, 
with care and convenience. We have continued to expand our range of 
destinations with 58 new routes launched during the year and the successful 
opening of our new base in Milan Malpensa. 
 
"Our profits increased by 56% to a record £129 million, despite the big 
increase in fuel costs. Our profit growth was driven by a 34% increase in 
ancillary revenues per seat, significant improvements in passenger yields 
and a continuing reduction in our non fuel unit costs. 

"Our Airbus order supports both our growth and our environmental 
credentials.  The combination of our modern fleet, with an average age of 
2.2 years, and high utilisation means that we emit nearly 30% fewer 
emissions per passenger kilometre than traditional airlines flying similar 
routes.  We welcome the Stern Review, which says that aviation accounts for 
just 1.6% of global greenhouse gas emissions.  We believe the best way 
forward is to bring aviation into the European Emissions Trading System as 
soon as possible.
 
"Today's Airbus order underpins our future growth and we expect to increase 
capacity in 2007 by 15%.  Current trading is in line with our expectations 
and we see yields for winter broadly in line with last year.  As we look 
further forward we anticipate more pressure on yields in the summer due to 
continued aggressive competition.  We remain focused on improving execution 
and delivery of results by revenue enhancement, network development and 
cost reduction.  This year has seen an encouraging step towards improved 
return on equity.  The Board remains confident that the business will make 
good progress in the coming years."

Seat Cost Allocation

http://www.crowwoodgrange.com/_private/Seat-cost allocation-2006.jpg


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