20 January 2011
EasyJet has stated that the severe weather across Europe in December cost it £18 million. Strike action by air traffic controllers in the final three months of the year cost it a further £6 million, and revenue lost from both disruptions was £7 million.
Despite these problems, EasyJet reported revenue in the final quarter of 2010 up 7.5% to £654 million, with passenger numbers up 8.8% to 11.9 million. Targeted expansion in Europe helped its performance, with 59% of its passengers now originating from outside the UK. Seats flown increased by 7.7%, with a 20% growth in mainland Europe. Capacity in the UK was level with the previous year.
Load factor rose by 0.9 percentage points to 86.7% and total revenue per seat flown was flat at £47.48 on a reported basis and grew by 0.3% on a constant currency basis. However, ancillary revenues – such as the cost of checking-in bags – fell 2.7% and the company said Continental European revenue performance was softer than Britain.
The budget airline also warned that higher fuel costs would lead to bigger half-year losses; from October 2010 to March 2011 it would be between £140 million and £160 million, compared with a loss of £78.7 million a year earlier, the airline said. Like most northern-hemisphere airlines, EasyJet makes most of its profit during the summer holiday season.
The airline’s Chief Executive, Carolyn McCall, felt that against a difficult economic backdrop aggravated by severe weather and air traffic control strike action, EasyJet has delivered a solid trading performance and grew total revenue whilst improving its position in mainland Europe.
http://www.uk-airport-news.info/luton-airport-news-200111.html