easyJet outlines outlook for FY2020, strategy to secure leading positions at primary airports

    easyJet reported (17-May-2019) the following outlook for FY2019/2020:

    • easyJet’s headline profit before tax expectations for FY2019 remain unchanged and in line with market expectations;
    • easyJet continues to implement its strategy to secure leading positions at primary airports to drive profitable growth, returns and cash flow;
    • Forward bookings for the 3Q2019 are three percentage points behind last year at 72% and flat year-on-year at 34% for 4Q2019. easyJet’s capacity growth in the second half is forecast at 7%;
    • Revenue per seat at constant currency in the second half is now expected to be slightly down, affected by the ongoing negative impact of Brexit related market uncertainty as well as a wider macro economic slowdown in Europe;
    • easyJet estimates that at current exchange rates and with jet fuel remaining within a USD600 metric tonne to USD700 metric tonne trading range, easyJet’s unit fuel bill for the 12 months to 30-Sep-2019 is likely to increase by between GBP25 million and GBP60 million compared to the 12 months to 30-Sep-2018;
    • easyJet’s total fuel cost for the year to 30-Sep-019 is currently estimated to be approximately GBP1.4 billion;
    • Exchange rate movements are likely to have around a GBP10 million positive impact on headline profit before tax compared to the 12 months to 30-Sep-2018;
    • easyJet is now targeting to consolidate its stronger positions delivered over the past few years and as a result its capacity growth in FY2020/2021 will likely be at the lower end of its historic growth rate. [more – original PR]