easyJet losses double on fuel costs
07.05.08
easyJet said today that the surging price of oil is continuing to dent its profits. Its Chief Executive said if fuel remains at record levels, 'weaker competitors will disappear' and 'easyJet will emerge stronger'.
For the six months to 31 March the budget airline made a £57.5m loss, including £9.1m of costs from its purchase of GB Airways, against £17.1m the previous year. Fuel costs in the April to September are set to increase by at least £45m, and will rise by an extra £2.5m for every $10 rise in the price of a barrel of oil.
easyJet usually makes a loss in the first half of its financial year, making profits in the busier summer months. The airline said that passenger numbers in the first half of the year rose by 15% to 18.9 million, while the load factor -- a measure of how much it fills planes -- held steady at 81%. Revenue grew 24% to £892.2m and forward bookings for this summer are ‘slightly’ ahead of last year.
The airline's chief executive Andy Harrison, said that the price of jet fuel has risen 35% over the last three months and is now 80% higher than last year. However, he said this would have more impact on competitors than on easyJet.
He said: ‘Nobody knows how much of this increase is driven by short-term financial speculation and how much is a longer-term sustainable increase. What is certain is that if these fuel increases are maintained, many of our weaker competitors will disappear or downsize and easyJet will emerge even stronger, reflecting the combination of our business model, our cost advantage, our new fuel-efficient fleet and the strength of our network.’
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book luton airport hotel or luton airport car parking at the lowest price, click on these links to two great luton airport car parking and luton airport hotel price comparison pages.
