Published On: Tue, Jan 26th, 2016

easyJet Sees Demand Drop After Paris And Egypt Terror Attacks


easyJet increased its load factor by 0.6 percent to 90.3%.

easyJet plc (LON:EZJ) released a trading update on Tuesday for the quarter ended 31st December 2015 highlighting an increase in passengers during the period whilst demand dropped in November and December due to recent terror attacks in Paris and Egypt.

The company noted “continued robust commercial performance and strong management action on cost delivers stable margins” as passengers carried by the firm increased by 8.1% to 16.1 million and capacity also grew by 7.3% to 17.8 million seats.

The airline said forward bookings for the second quarter are showing a noticeable improvement in revenue per seat compared to November and December.

Carolyn McCall, easyJet’s Chief Executive said:

“easyJet’s excellent customer proposition combined with low oil prices has allowed it to offer lower fares which has driven an 8% increase in passenger numbers in the first quarter.

“The easyJet customer-centric strategy of giving passengers low fares to primary airports continues to be executed well. This year we will consolidate that with a relentless focus on cost reduction which is already delivering. This will ensure that easyJet continues to win and continues to grow revenue, profit and dividends.”

Total revenue for the business hit £930 million, down 0.1% on the previous year as revenue which was generated by increased passenger volumes and a higher load factor was hit by reduced revenue per seat whilst negative foreign exchange movements cost £32 million.

Following the result of the robust cost performance, disciplined capacity allocation and low fuel price the Board stated that its “expectations for profit before tax for the year to 30 September 2016 remains in line with market expectations.”

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