EasyJet Shows Good Profit Despite Extreme Weather

Despite the extreme weather conditions that have been hitting the UK over the past month, one budget airline was happy to note that they have seen strong revenue growth. EasyJet said that, despite the fact that their schedules have been severely disrupted by the winter freeze, the Luton-based airline has seen double digit revenue growth over the past quarter.

Snow disruption has cost this airline as much as £8 million. However, the airline did show that, despite the snow, about 90 percent of its scheduled flights still took off during the storms. The chief executive of easyJet, Andy Harrison, said that the carrier has continued to deliver a superior performance record into the first quarter of the new financial year.

Andy went on to say that the strength of customer demand has allowed them to raise passengers flown by the airline by almost 10 percent with virtually no yield deterioration. Economic conditions remain challenging for this year, but they expect to deliver substantial profit improvements for the rest of the year.

Revenues for the airline rose 10.5 percent to £608 million. Passenger numbers grew by 11 million, which is up 9.1 percent year on year. This growth was driven by non-UK passengers, the airline said. Non-UK passengers now make up an amazing 54 percent of easyJet fliers.

Ancillary revenues rose as well by 21 percent to £127 million. The average revenue from checked in bags rose 10 percent to £4.39 per passenger. Stripping out these ancillary revenues, passenger revenue per seat rose 1.9 percent to £37.60. Thus, proving that the airline is showing strong growth.