Slide 1: Q1 2017 analyst and investor presentation
Q1 2017 analyst and investor presentation Tuesday 24 January 2017
Slide 2: Q1 performance – Overview
Q1 performance – Overview 1. Improving revenue per seat trend in a high growth market • Resilient demand across Europe • Good forward bookings outlook 2. Strong cost control • Q1 cost per seat excluding fuel (@cc) in line with expectations: +1.1%1 • easyJet lean continues to deliver • Making good pr
Slide 3: Trading in Q1
Trading in Q1 Q1 ‘17 Q1 ‘16 Change Passengers (m) 17.4 16.1 1.3 Load factor (%) 90.0 90.3 (0.3ppt) Seats (m) 19.3 17.8 1.5 Average sector length (km) 1,074 1,072 2 Seat revenue (£m) 977 914 63 Non-seat revenue (£m) 20 16 4 Total revenue (£m) 997 930 67 Total revenue per seat (£) 51.64 52.28 (0.64) @
Slide 4: Purposeful capacity investment in Q1
Purposeful capacity investment in Q1 8.6% easyJet capacity growth in Q1 Build & strengthen No1 positions Take advantage of growth opportunities xx Q1 2017 growth – % seats Target specific catchment areas Invest in lean bases UK 7.9% Netherlands 8.3% Switzerland 9.3% Germany France 5.8% 13.4% Italy F
Slide 5: Forward bookings
Forward bookings % Seats sold * 91% 90% Winter '16 Winter '17 80% 82% 73% 73% 54% 56% 55% 56% 35% 35% 31% 25% Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold Q1 Jan Feb Mar Q2 H1 Apr * H1 (1 Oct 2016 to 31 March 2017) 5 As at 20-01-17 5
Slide 6: RPS – Improving underlying trend
RPS – Improving underlying trend Jul - Sep '16 Oct - Dec '17 Jan - Apr '17 RPS % movement vs prior year (Not to scale) Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold - Graph is adjusted for seasonality 6 6
Slide 7: Headline costs in line with expectations
Headline costs in line with expectations Q1 2017 Q1 2017 Headline Reported Constant currency 7.9% 2.1% Cost per seat including fuel Increase Decrease 12.4% 1.1% Cost per seat excluding fuel Increase Increase Increases driven by: Offset by: • Significantly weaker GBP in Q1 • Robust management action
Slide 8: Sector leading balance sheet
Sector leading balance sheet Sale & leaseback • Completed first transaction for 10 A319s – strong demand drives good pricing ($144m cash) • Non-headline P&L impact lower than expected - £16m • Manages residual value and creates an exit route for older aircraft RCF • One year extension through to Feb
Slide 9: Fuel and foreign exchange hedging
Fuel and foreign exchange hedging Fuel US dollar Euro surplus CHF surplus requirement requirement Six months ending 85% at $659/ 31 March 2017 83% at $1.52/£ 82% at €1.36/£ 78% at CHF1.42/£ metric tonne Full year ending 83% at $613/ 30 September 2017 80% at $1.50/£ 86% at €1.35/£ 74% at CHF1.40/£ me
Slide 10: Outlook
Outlook Capacity (seats flown) • H1 c.+9.0% (before disruption) • FY c.+9.0% (before disruption) Revenue per seat at constant currency • Revenue per seat: high single digit decline in H1 Cost per seat at constant currency • H1 headline cost per seat excluding fuel: up c. 1% (assuming normal levels o
Slide 11: Summary
Summary • Q1 in line with expectations • Improving trend in commercial performance • Strong underlying cost performance as renewed focus delivers early benefits • Continuing to invest purposefully across our core markets • Pipeline of revenue and cost initiatives to continue to drive returns Footer
Slide 12: Q&A
Q&A
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