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Easyjet expands as profits soar | Easyjet expands as profits soar |
(about 3 hours later) | |
Easyjet has announced plans to expand its fleet as it unveiled a 56% rise in annual profits on the back of growing passenger numbers and new routes. | |
The low-cost carrier made a pre-tax profit of £129m ($245m) in the year to the end of September - despite a big increase in fuel costs. | |
Passenger numbers for the year were up by 11.5% to 33 million people. | |
The airline said it was buying 52 new Airbus A319 jets, and had secured the option to buy up to 75 A320 planes. | |
Easyjet said this meant that it now had 104 aircraft on firm order with Airbus, with a list price of more than $4bn, and also held purchase rights over a further 123 aircraft. | |
The new A319 aircraft are scheduled to be delivered between 2008 and 2010. | |
Fuel costs | |
Easyjet's current fleet has 122 planes, flying 282 routes on a network of 74 airports and 21 countries. | |
Chief executive Andy Harrison stressed that the modernity of Easyjet's fleet - with an average age of 2.2 years - meant it produced about 30% less emissions per passenger kilometre than other traditional airlines flying similar routes. | |
The Airbus orders are further proof of Easyjet's ambitions Richard Hunter, Hargreaves Lansdown stockbrokers See Easyjet's share price | |
"We welcome the Stern Review, which says that aviation accounts for just 1.6% of greenhouse gas emissions, and we have long campaigned to bring aviation into the European Emissions Trading System as soon as possible," he said. | "We welcome the Stern Review, which says that aviation accounts for just 1.6% of greenhouse gas emissions, and we have long campaigned to bring aviation into the European Emissions Trading System as soon as possible," he said. |
Easyjet said that its fuel bill had increased by 33% over the past year - the equivalent to £2.48 for each seat on a flight. | |
Security alerts in August - when it had to cancel 469 flights - cost it about £4m. | |
The airline also said that it planned to expand capacity by about 15% next year. | |
Richard Hunter of Hargreaves Lansdown stockbrokers said Easyjet's results had been well-received. | |
"It appears that the spectre of soaring fuel prices has been contained, with the summer disruptions and even BA's entry into the low-cost space having limited impact," he said. | |
"Aggressive cost reduction, increasing passenger numbers and improvements in ancillary revenues per seat have all contributed to the near 60% rise in profits. | |
"The Airbus orders are further proof of Easyjet's ambitions." |