easyJet delivers robust performance for the year ending September 30, 2017

easyJet reported record number of passengers at 80.2 million, up 9.7% year on year, with record load factor at 92.6% (2016: 91.6%), reflecting easyJet’s strong network positions and customer proposition. Capacity grew by 8.5% to over 86.7 million seats, as easyJet continued its strategy of purposeful investment with a focus on number one and two market positions at Europe’s leading airports. Total revenue of £5,047m was up 8.1%, with revenue per seat broadly flat year on year (-0.4%) at £58.23, reflecting a currency benefit, strong ancillary revenue and increased load factors. Headline profit before tax of £408m, demonstrated the resilience of easyJet’s business model, despite an adverse headline currency impact of £101m. easyJet reported profit before tax of £385m, after non-headline costs of £23m mainly relating to sale and leaseback charges. In October easyJet announced an agreement to acquire part of Air Berlin’s operations at Berlin Tegel airport for a purchase consideration of €40m, subject to antitrust and regulatory approvals. The acquisition, which is expected to close in December 2017, will result in easyjet entering into leases for up to 25 A320 aircraft, offering employment to up to 1,000 former Air Berlin crews and taking over other assets including slots. The purchase price excludes start-up and transitional operating costs. Based on current assumptions, easyJet expects to incur headline losses of around £60m on its activities at Tegel in 2018 financial year, as it starts up operations in January 2018 using wet lease aircraft with initially lower loads and yields. In addition, one-off non-headline costs associated with the transaction are expected in the 2018 financial year of around £100m. These costs represent the parallel ramp up of a dry lease operation, including fleet conversion and staff recruitment and training costs, as well as transaction costs. The transaction is expected to be earnings accretive by 2019 financial year