Slide 1: Quarter 3 2010 Interim Management Statement
Quarter 3 2010 Interim Management Statement 28 July 2010
Slide 2: Week 4 – priorities and initial impressions
Week 4 – priorities and initial impressions Priorities: Engage with staff, shareholders, customers and key suppliers Mitigation plan for recent operational issues Take a fresh look at the business; share findings in November Initial impressions: Advantaged network: low fares to convenient locations
Slide 3: Good commercial performance
Good commercial performance Continued good commercial performance Total revenue per seat up 3.6% at constant currency 7% growth in non-UK originating passengers Market share gains across Europe Significant impact on results from volcanic ash 7,000 flights cancelled impacting one million passengers E
Slide 4: Significant impact from volcano
Significant impact from volcano Impact YoY growth YoY growth ex volcano* inc volcano* Seats flown 1.15m 10.0% 1.7% Revenue £68m 4.4% 3.6% Costs saved £(39)m - - Lost contribution £29m - - Additional costs (e.g. contact centre) £8m - - Customer compensation (EU 2004 261) £28m - - Total additional cos
Slide 5: Continued robust revenue performance
Continued robust revenue performance Q3 ‘10 Q3 ‘09 Change Passengers (m) 12.3 11.9 3.5% Load factor (%) 86.1 84.7 1.4ppt Seats (m) 14.3 14.0 1.7% Sector length (km) 1,135 1,116 1.8% Total revenue (£m) 759.2 720.8 5.3% Total revenue per seat (£) 53.23 51.42 3.5% @ constant exchange (£) 53.24 51.42 3.
Slide 6: Strong passenger revenue growth
Strong passenger revenue growth Q3 ‘10 Q3 ‘09 Change Passenger revenue (£m) 617.2 580.6 6.3% per seat (£) 43.27 41.42 4.5% Ancillary revenue (£m) 142.0 140.2 1.3% per seat (£) 9.95 10.00 (0.4)% Ancillary revenue excluding checked bag(£m) 76.3 74.9 1.9% Per seat (£) 5.35 5.34 0.1% Strong passenger re
Slide 7: Market opportunities
Market opportunities Consolidating UK performance Increasing load factor and revenue per seat Network optimisation; closed East Midlands, terminated under-performing routes Luton Gatwick continues to deliver a good commercial performance, including new routes; Aer Lingus and BA continue to retreat S
Slide 8: Continued focus on costs
Continued focus on costs Third quarter operating costs ex fuel per seat up up 1.8% per seat at constant currency (excluding impact of volcanic ash) Impact from volcanic ash of £36 million in the quarter On track to deliver £190m+ cost savings: Leveraging easyJet scale to drive improvement in airport
Slide 9: Fleet and financing
Fleet and financing 30 June 2010 30 Sept 2010 30 Sept 2011 30 Sept 2012 A319 151 159 163 173 A320 23 23 35 35 A320 GB spec 2 2 - - A321 GB spec 4 4 - - B737 8 8 2 - Total 188 196 200 208 4 x GB A321 to exit the fleet; costs of c.£3.3 million in F’10, positive cash-flow after repayment of associated
Slide 10: Operational issues
Operational issues Safety the No. 1 priority Root cause analysis for recent disruption underway, premature to draw conclusions but clear that performance was impacted by a number of factors including: A high level of ATC strikes, 20 official and unofficial ATC actions since 1 April 2010 Crewing issu
Slide 11: Forward bookings in line with expectations
Forward bookings in line with expectations % Seats Sold * TY LY July August September 64% of Q4 seats now sold 11 * As at 19.07.10
Slide 12: Outlook
Outlook Forward bookings are in line with the prior year and with 64% of the fourth quarter seats now sold, total revenue per seat growth for the final quarter at constant currency is expected to be in the range of 2% to 3%. Therefore full year total revenue per seat at constant currency is expected
Slide 13: Disclaimer
Disclaimer This communication is directed only at (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; or (ii) high
Slide 14: Appendix
Appendix easyJet pic
Slide 15: Hedging update
Hedging update Three months to 30 September 2010 66% of anticipated US$ requirement for the three months to 30 September 2010 hedged using forwards at $1.60 80% of anticipated Jet requirement for the three months to 30 September 2010 hedged using forwards at $726/MT 81% of anticipated euro surplus f