23/11/2004 12:23
Easyjet has thanked the "resilience" of its business model for a 21% rise in annual profits, despite the pressure of high oil prices and tough competition.
The low-cost carrier saw its pre-tax profit increase to £62.2m ($115m) for the 12 months to the end of September, on revenues up 17% to £1.09bn.
Passenger numbers were up one-fifth to 24.4 million for the Luton-based firm.
Easyjet warned that the festive period would be "challenging", but said it was confident of ongoing growth in 2005.
"These are creditable results in challenging market conditions which have affected all airlines," said Easyjet chief executive Ray Webster.
"Both financially and operationally we are stronger than we have ever been before, and despite the high fuel price and degree of competition in the market we are well placed for the coming year."
Easyjet's shares were up 3.5p or 1.9% to 186.75 in early Tuesday trading.
Cost control
The firm, which last month saw Iceland's national carrier Icelandair buy an 10.1% stake, saw its load factor - the percentage by which its planes are full - increase to 84.5% from 84.1%.
Easyjet said that the twin pressures of high oil prices and tough competition from other budget airline rivals such as Ryanair were "beyond its control".
Total revenue per passenger fell 2% to £44.82 due to increased competition, but the increases in passenger numbers and load factors overcame this decline.
Easyjet said it was successfully offsetting negative factors by its strong focus on keeping operational costs as low as possible.
"There are good opportunities for us in 2005," added Mr Webster.
"We expect to grow our sales through further enhancing our network and growing ancillary revenues."
Cautious expansion
During 2004, the company expanded to 92 aircraft, 153 routes and 44 airports.
However the firm announced in September it would cut back its fleet expansion plans to 16% next year, instead of 24% as previously planned.
Easyjet's profits came in just ahead of market expectations.
Mr Webster said he had "no idea" if Icelandair plans to increase its stake in the airline.
"I have no idea, (but) we're delighted that at least someone recognises the underlying value of the airline."
Mike Powell, aviation analyst at Dresdner Kleinwort Wasserstein, said Easyjet's results were in line with its expectations.
"Overall our forecast remains unchanged and we are sticking with a hold rating for Easyjet's shares," said Mr Powell.
"A lot hangs on what happens with the Icelandair situation and whether it makes a takeover bid for Easyjet. We don't however think this will happen."
The low-cost carrier saw its pre-tax profit increase to £62.2m ($115m) for the 12 months to the end of September, on revenues up 17% to £1.09bn.
Passenger numbers were up one-fifth to 24.4 million for the Luton-based firm.
Easyjet warned that the festive period would be "challenging", but said it was confident of ongoing growth in 2005.
"These are creditable results in challenging market conditions which have affected all airlines," said Easyjet chief executive Ray Webster.
"Both financially and operationally we are stronger than we have ever been before, and despite the high fuel price and degree of competition in the market we are well placed for the coming year."
Easyjet's shares were up 3.5p or 1.9% to 186.75 in early Tuesday trading.
Cost control
The firm, which last month saw Iceland's national carrier Icelandair buy an 10.1% stake, saw its load factor - the percentage by which its planes are full - increase to 84.5% from 84.1%.
Easyjet said that the twin pressures of high oil prices and tough competition from other budget airline rivals such as Ryanair were "beyond its control".
Total revenue per passenger fell 2% to £44.82 due to increased competition, but the increases in passenger numbers and load factors overcame this decline.
Easyjet said it was successfully offsetting negative factors by its strong focus on keeping operational costs as low as possible.
"There are good opportunities for us in 2005," added Mr Webster.
"We expect to grow our sales through further enhancing our network and growing ancillary revenues."
Cautious expansion
During 2004, the company expanded to 92 aircraft, 153 routes and 44 airports.
However the firm announced in September it would cut back its fleet expansion plans to 16% next year, instead of 24% as previously planned.
Easyjet's profits came in just ahead of market expectations.
Mr Webster said he had "no idea" if Icelandair plans to increase its stake in the airline.
"I have no idea, (but) we're delighted that at least someone recognises the underlying value of the airline."
Mike Powell, aviation analyst at Dresdner Kleinwort Wasserstein, said Easyjet's results were in line with its expectations.
"Overall our forecast remains unchanged and we are sticking with a hold rating for Easyjet's shares," said Mr Powell.
"A lot hangs on what happens with the Icelandair situation and whether it makes a takeover bid for Easyjet. We don't however think this will happen."
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