easyJet has increased its annual profit forecast for the 12 months to September 30 of £470m-480m compared with previous guidance of £450m-480m, after it expects fourth quarter revenue growth of around 6%.
Revenue per seat at constant currency for the three months to 30 September 2013 is expected to grow by around 6% driven by strong demand in July and August. Despite the political unrest in Egypt and the £25 million adverse impact in the second half of the year from the movement of Easter which fell on 31 March 2013, a week earlier than in 2012, easyJet stated that revenue per seat at constant currency for the six months to 30 September 2013 is expected to grow by around 6%.
Cost per seat excluding fuel growth at constant currency of c.4% is expected to be in line with the guidance issued on 24 July 2013, with the year on year increase driven primarily by higher charges at regulated airports. Disruption in the three months 30 September 2013 was minimal.
It is expected that easyJet’s unit fuel cost in the six months to 30 September 2013 will be approximately £13 million favourable to the six months to 30 September 2012; and that the impact of exchange rate movements (including those related to fuel) will be around £5 million adverse compared to the six months to 30 September 2012.
easyJet is currently 67% hedged for the full year ending 30 September 2014 at $984 m/t. It is also 51% hedged at $951 m/t for the full year ending 30 September 2015.
easyJet estimates that at current fuel and exchange rates, its unit fuel bill for the first six months of financial year 2014 is likely to increase by £20 million to £30 million compared to the six months to 31 March 2013. In addition, exchange rate movements are likely to have around a £10 million negative impact compared to the six months to 31 March 2013, driven by changes in the sterling to US dollar rate on fuel.
Over a quarter of seats in the first half of the year ending 30 September 2014 have now been sold, in line with the prior year.
easyJet will publish its full year results on 19 November 2013 and will provide further details on its performance in the twelve months to 30 September 2013. Commenting on the pre-close statement, Carolyn McCall, easyJet’s Chief Executive said: “easyJet has delivered a strong performance in the last twelve months due to management action to generate value to our customers and maintain a tight control of costs combined with an unusually benign capacity environment.
easyJet’s great network, friendly customer service, cost advantage and strong balance sheet means it will continue to be a structural winner in European short haul aviation and to deliver sustainable returns and growth for shareholders.”