Slide 1: Q3 2018 – Trading update
Q3 2018 – Trading update
Slide 2: Q3 performance – Overview
Q3 performance – Overview 1. Strong revenue trend • Positive demand across Europe • Benign competitor environment • Strong ancillary revenue performance 2. Solid underlying cost performance – disruption continues to be an issue • Disruption the biggest driver of cost increase for the quarter o Europ
Slide 3: Q3 key stats – ex Tegel
Q3 key stats – ex tegel Q3 ‘18 Q3 ’17 Change Passengers (m) 23.1 22.3 3.6% Load factor (%) 94.0 93.1 0.9ppts Seats (m) 24.6 24.0 2.5% Average sector length (km) 1,126 1,118 0.7% Passenger revenue (£m) 1,202 1,116 7.7% Ancillary revenue (£m) 315 271 16.3% Total revenue (£m) 1,517 1,387 9.4% Total rev
Slide 4: Revenue performance – ex Tegel
Revenue performance – ex Tegel @ constant currency +4.8% £60.55 c.1.0% c.2.3% c.1.6% £57.78 c.(2.8)% c.2.7% Q3 FY17 RPS Seasonality Monarch French competitor Ancillary revenue Underlying trading Q3 FY18 RPS inc Easter administration industrial action Ex Tegel 4
Slide 5: Cost performance – Ex Tegel
Cost performance – Ex tegel Q3 2018 Q3 2018 Headline Reported Constant currency 4.6% 3.1% Cost per seat including fuel Increase Increase 4.6% 4.0% Cost per seat excluding fuel Increase Increase Increases driven by: Offset by: • Disruption impact of c. £25m vs Q3 2017: • Robust management action on c
Slide 6: Q3 Tegel operation
Q3 Tegel operation > Market capacity greater than expected > Inefficient schedule However: > Load factor consistently above 80% > Q3 OTP = 84% > April = 89%, May = 85%, June = 77% (impacted by EU wide disruption) > Recruitment and training pipeline is on track > At the end of June we had 10 easyJet
Slide 7: Fuel and foreign exchange hedging
Fuel and foreign exchange hedging Fuel requirement US dollar requirement Euro Surplus Half year ending 30 September 2018 75% @ $529/tonne 77% @ $1.36/£ 89% @ EUR1.20/£ Full year ending 30 September 2018 77% @ $522/tonne 80% @ $1.36/£ 74% @ EUR1.22/£ Full year ending 30 September 2019 61% @ $560/tonn
Slide 8: H2 forward bookings
H2 forward bookings 93% 94% 93% Last Year This Year 91% 80% 79% 65% 67% 66% 64% 41% 41% Q3 Jul Aug Sep Q4 H2 H2 2018 (Apr 2018 to Sep 2018) as at 16 July 2018 – Ex Tegel flying 8
Slide 9: H2 capacity outlook
H2 capacity outlook H2 FY17 H2 FY18 12.8% 0.4% decrease when excluding Tegel flying 8.4% 6.0% 6.4% 4.9% 5.5% 2.3% -2.2% Capacity change total SH Market Competitors on easyJet markets Capacity Change easyJet markets easyJet capacity change Short haul market change easyJet markets Total easyJet capaci
Slide 10: 2018 Outlook
2018 Outlook Excluding Tegel Capacity (seats flown) Tegel Operation > FY c.+4.5% increase (assuming normal levels of Q4 > Total reported loss before tax – c. £175 million disruption) > Headline loss before tax – c.£125 million > Non-headline loss before tax - c. £50 million Revenue per seat at const
Slide 11: Q&A
q&a 11