Business
Capital Markets Day and Shareholder Returns
Capital Markets Day and Shareholder Returns.
About this update from Easyjet Plc
[{"type":"text","content":"\n \nRNS Number : 9724R easyJet PLC 18 September 2014 \n \n\nEASYJET CAPITAL MARKETS DAY AND SHAREHOLDER RETURNS\n \neasyJet increases ordinary dividend payout ratio to 40%\n \neasyJet plc (\"easyJet\" or \"the Company\") is hosting a Capital Markets Day in London at 2pm today. The event will be webcast and a copy of the presentation will be available on the corporate website shortly before the event. No update on current trading will be provided during the presentation and easyJet will issue its pre-close statement as normal on 3 October 2014.\n \nIn light of the continued strong financial performance of easyJet and confidence in the future, the Board has decided to increase the payout ratio for the ordinary dividend from one third of profit after tax to 40% of profit after tax from the financial year ending 30 September 2014.\n \nFurther details of the ordinary dividend in respect of the year ending 30 September 2014 will be announced with the full year results on 18 November 2014. The dividend will be subject to shareholder approval at the Company's Annual General Meeting on 12 February 2015 and will be paid to shareholders in the early part of calendar year 2015.\n \nAdditionally, easyJet has reached agreement with Airbus to exercise existing purchase rights over 27 current generation A320 aircraft for delivery between 2015 and 2018. This provides easyJet with the flexibility to continue to execute its proven strategy of disciplined growth and to take advantage of profitable market opportunities. The additional aircraft will augment easyJet's highly cash generative model and the Board will continue to keep the balance sheet under review and intends to make further returns of capital to shareholders in the coming years. In addition, they will continue to improve easyJet's cost advantage as a current generation A320 aircraft delivers a cost per seat improvement of between 7% and 8% compared to a current generation A319 aircraft. These aircraft are subject to a very substantial price discount from the list price1 and are expected to be funded through a combination of easyJet's internal resources, cashflow, sale and leaseback transactions and debt. \n \neasyJet continues to have a high level of fleet flexibility provided by its current fleet arrangemen...