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EasyJet Q1 Revenues Up, Load Factor Down; Sees FY Profit In Line With Market

Low-cost airline easyJet Plc (ESYJY.PK,EZJ.L) reported Tuesday that its first-quarter total revenue increased 13.7% to 1.30 billion pounds from last year's 1.14 billion pounds with robust customer demand. The company's expectations for the full year headline profit before tax are broadly in line with current market expectations.

For the first quarter, passenger revenue increased 12.2% from last year to 1.03 billion pounds, and ancillary revenue climbed 20 percent to 271 million pounds.

Passenger numbers in the quarter increased 15.1% to 21.6 million, driven by an increase in capacity of 18.2% to 24.1 million seats. This was slightly lower than originally planned due in part to the drone issues at London Gatwick and to late A321 deliveries from Airbus.

Load factor decreased by two percentage points to 89.7%, as anticipated, due to the one-off increase in prior year late demand and the dilutive impact of Tegel flying.

Total revenue per seat decreased 4.2% at constant currency, in line with expectations.

The company noted that despite the consumer and economic uncertainty created by Brexit, demand currently remains solid and forward bookings for the period after 29th March are robust.

For the year ending September 30, 2019, easyJet expects first-half capacity growth of about 15 percent and full-year capacity growth of about 10%.

With approximately 40% of forward bookings secured for the second quarter, revenue per seat at constant currency for the first half is expected to decrease by mid to high single digits.

Further, the company said that for the first half of 2019, booking levels currently remain encouraging despite the lack of certainty around Brexit for customers. Second half bookings continue to be ahead of last year.

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