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EasyJet Q3 revenue per seat decreased

Staff Writer |
EasyJet posted a drop in revenue per seat and total revenue for the third quarter amid difficult trading that was hit by the terror attack in Brussels and the Egyptair tragedy.

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For the quarter ended June 30, total revenue per seat was down 8.3% at constant currency or 7.7% on reported basis to £54.54, while total revenue fell by 2.6% to £1.196bn as increased seat capacity was offset by the impact on yield of overall market capacity and cancellations as a result of external events.

EasyJet said its commercial and operational performance was affected by the Brussels attack and Egyptair tragedy, air traffic control strikes and congestion, runway closures at Gatwick airport and severe weather leading to 1,221 cancellations.

Still, the company said ongoing improvements to its customer proposition and other revenue initiatives helped to stimulate bookings, making up for part of the impact of disruption and other external factors.

The load factor - which gauges how full flights are - rose to 92% from 91.7% in the third quarter of 2015.

Chief executive Carolyn McCall said: "The economic and operating environment has been difficult in the third quarter due to a number of factors including air traffic control strikes and other industrial action, runway closures at London Gatwick and severe weather.

These factors combined with industry capacity growth in short haul continue to have an impact on industry yields at a peak time of year. More recently currency volatility as a result of the UK's referendum decision to leave the EU as well as the recent events in Turkey and Nice continue to impact consumer confidence.

"Despite this, EasyJet carried more passengers and achieved higher load factors during the third quarter as EasyJet's brand continued to resonate strongly across Europe. EasyJet is strongly controlling costs and driving continued improvement in operational and customer delivery. We are focussed on the opportunities that are inevitable from a tougher environment."

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