Slide 1: Q1 2016 analyst and investor presentation
Q1 2016 analyst and investor presentation Tuesday 26 January 2016
Slide 2: Q1 performance – Overview
Q1 performance – Overview 1. Resilient commercial performance • Robust demand environment drives strong start to the quarter • Impact of Sharm El-Sheikh and Paris on load factor and yield • Bookings recovering to normal levels 2. Improving cost trajectory • Q1 cost per seat excluding fuel better tha
Slide 3: Trading in Q1
Trading in Q1 Q1 ‘16 Q1 ’15 Change Passengers (m) 16.1 14.9 1.2 Load factor (%) 90.3 89.7 0.6ppt Seats (m) 17.8 16.6 1.2 Average sector length (km) 1,072 1,089 (17) Seat revenue (£m) 913.2 915.8 (2.6) Non-seat revenue (£m) 16.3 14.7 1.6 Total revenue (£m) 929.5 930.5 (1.0) Total revenue per seat (£)
Slide 4: Trading / demand recovering, delayed yield improvement
Trading / demand recovering, delayed yield improvement • Strong start to the quarter December load factor • Underlying trading in line with expectations, reflecting higher capacity and low fuel environment Load factor (% booked) • Impact of Sharm El-Sheikh and Paris attacks in Oct/Nov • Bookings rec
Slide 5: Renewed focus cost delivering early results
Renewed focus cost delivering early results Q1 2016 Q1 2016 Reported Constant currency 6.2% 3.7% Cost per seat including fuel Decrease Decrease 2.3% 1.3% Cost per seat excluding fuel Decrease Increase Increases driven by: Offset by: • Regulated airport charges • Robust management action on costs: •
Slide 6: Improving operational performance
Improving operational performance 100% easyJet network OTP 90% 82% 80% 80% 70% 60% 50% 40% 2010 2011 2012 2013 2014 2015 Q1 2016 CSAT improving Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Completely/Very satisfied Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold
Slide 7: Disciplined capacity investment in Q1
Disciplined capacity investment in Q1 7% capacity growth during Q1 United Kingdom c. +8% Netherlands c. +24% France c. +6% Germany c. +11% Spain c. +4% Switzerland c. +9% Portugal c. +19% Italy c. +5% Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold Further inv
Slide 8: Hedging update
Hedging update Fuel US Dollar Euro Swiss Franc requirement requirement Surplus surplus Half year ending 31 March 2016 87% 89% 79% 72% Average rate $846 metric / $1.62 €1.20 CHF1.46 tonne Full year ending 30 September 2016 86% 84% 84% 70% Average rate $823 metric / $1.62 €1.23 CHF1.46 tonne Full year
Slide 9: Forward bookings
Forward bookings % Seats sold * 90% 90% Winter '15 Winter '16 84% 83% 75% 75% 60% 59% 38% 38% 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 H1 H1 (1 Oct 2015 to 31 March 2016) 9 As at 25-01-16 9
Slide 10: Outlook
Outlook Full year profit before tax consensus • In line with current market expectations Capacity (seats flown) • H1 c.+8% (before disruption) • FY c.+7% (before disruption) Revenue and Cost per seat at constant currency • Revenue per seat: mid-single digit decline in Q2 • H1 cost per seat excluding
Slide 11: Summary
Summary • Resilient commercial performance • Strong cost performance as renewed focus delivers early benefits • Continuing to invest in growth opportunities across our core markets • Pipeline of revenue and cost initiatives to continue to drive returns • Outlook for FY 2016 in line with market expec
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