Slide 1: Quarter 3 2011 Interim Management Statement
Quarter 3 2011 Interim Management Statement 22nd July 2011
Slide 2: Good performance in the quarter
Good performance in the quarter Total revenue per seat up 5.2% (reported), 4.6% (constant currency Capacity investments maturing Improvement in ancillary revenues following management action in Q2 Cost per seat ex fuel up 2.7% (reported), 1.1% (constant currency) Improved On Time Performance – netwo
Slide 3: Improved operational performance
Improved operational performance On Time Performance LGW Network 90% Improved On 80% Customer Time 70% satisfaction Performance 60% up 5% to across the 50% 78% in Q3 network 40% 30% LGW Network Flightstats.com – 9 months to end June 2011 85 Gatwick OTP 80 maintained OTP now above 75 84 moving 83 net
Slide 4: Robust revenue performance
Robust revenue performance Q3 ‘11 Q3 ‘10 Change Passengers (m) 14.4 12.3 17.3% Load factor (%) 86.3 86.1 0.2ppt Seats (m) 16.7 14.3 17.1% Sector length (km) 1,118 1,135 (1.6)% Total revenue (£m) 935 759 23.2% Total revenue per seat (£) 56.02 53.23 5.2% @ constant currency (£) 55.66 53.23 4.6% Capa
Slide 5: Robust revenue performance
Robust revenue performance Q3 ‘11 Q3 ‘10 Change Passenger revenue (£m) 741 617 20.0% per seat (£) 44.37 43.27 2.5% Ancillary revenue (£m) 194 142 36.9% per seat (£) 11.65 9.95 17.0% Improved ancillary revenue performance: Improvement in fees and charges following management action taken in Q2
Slide 6: Cautious approach to F'12 capacity
Cautious approach to F’12 capacity FY12 – capacity Daily freq A/B routes June week (Mon- – Fri) 60 Winter – flat 50 Full Year – 3-4% 40 Fleet 30 20 Maximum of 204 aircraft for next 2 winters 10 0 Schedule quality part week 1 2 3 4 5 6 2010 2011 2012 Frequencies added and time of day * A and B routes
Slide 7: Finance strategy
Finance strategy Objectives Measures Earn returns in excess of cost of capital Improve pbt per seat to GBP 5 Return Targets through the cycle Post tax ROCE of 12% through the cycle Invest in growth opportunities where returns are attractive Ensure robust capital structure Maximum gearing
Slide 8: Hedging update
Hedging update Percentage of anticipated requirement Fuel US Dollar Euro hedged requirement requirement surplus sale Three months ending 30 September 2011 75% 80% 80% Rate $812/MT $1.60 €1.10 Full year ending 30 September 2011 74% 76% 70% Rate $750MT $1.60 €1.10 Full year ending 30 September 2012 54
Slide 9: Forward bookings
Forward bookings % Seats sold * 75% of H2 seats now sold * As at 18.07.11 9
Slide 10: Outlook
Outlook Capacity (seats flown) FY +11% reported, +9% ex volcano H2 +12% reported, +8% ex volcano Revenue per seat (constant currency) FY +2% to +3% H2 +5% to +6% Underlying cost per seat ex fuel (constant currency) FY down 1% to 2% (assuming normal disruption levels) “August is the important trading
Slide 11: 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