EasyJet first half losses nearly double

EasyJet first half losses nearly double

Fuel costs and taxes contributed to an almost doubling in easyJet’s half year pre-tax loss of £153 million.

The budget carrier said fuel unit cost increase accounted for £43 million and increased passenger taxation for £21 million of the £74 million increase in the loss compared with £79 million for the same winter period a year earlier.

Passenger numbers rise by almost 12% to 23.9 million with 59% originating from outside the UK, a rise of five percentage points.

But total revenue per seat fell by 2.1%, blamed in part on increased passenger departure taxes and charges.

Ancillary revenue per seat improved in the second quarter and was “broadly flat” for the six months to March 31 at £10.20 per seat.

The airline described forward bookings as being in line with the same time last year with nearly half of summer seats now sold.

The airline’s chief executive Carolyn McCall said: “The past six months has been tough with sharply rising fuel costs combined with cautious behaviour by consumers and an adverse impact from taxes on passengers.

“Despite this difficult environment we have made strong progress over the past six months in implementing the strategy outlined following our review of the business last year.

“Our top team has been rebuilt and we continue to optimise the network by configuring flight frequencies and destinations which are attractive to business travellers.

“We have also made use of the commercial freedom granted by the brand licence agreement and delivered progress in controlling costs. Our operation is now robust and we are well placed to successfully deliver our summer flying programme.

“Our cash generation remains strong and these results show that the steps we are taking are already having a positive effect.”


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