EasyJet FY19 Profit, Revenue Per Seat Down, Traffic Up; Cuts Dividend

(RTTNews) - Low-cost airline easyJet Plc (ESYJY.PK, EZJ.L) reported Tuesday that its fiscal 2019 profit before tax decreased 3.4 percent to 430 million pounds from last year's 445 million pounds.

Headline profit before tax was 427 million pounds, compared to 578 million pounds a year ago. Total headline profit before tax per seat decreased 32.9 percent to 4.07 pounds per seat.

Total revenue increased 8.3 percent to 6.39 billion pounds from prior year's 5.90 billion pounds. Total revenue per seat decreased 1.8 percent to 60.81 pounds, driven by some weakness in consumer confidence.

Passenger numbers for the year increased 8.6 percent from last year to 96.1 million passengers. Capacity increased 10.3 percent to 105 million seats, due to growth across all regions. Load factor decreased by 1.4 percentage points to 91.5 percent.

Further, the Board is recommending an ordinary dividend of 43.9 pence per share, down from 58.6 pence last year, subject to shareholder approval at the Company's Annual General Meeting on 6 February 2020.

Looking ahead, for the 2020 financial year, easyJet plans to grow capacity at the lower end of medium-term 3-8 percent guidance. Scheduled capacity growth in the first quarter is currently around 2 percent and is expected to be less than 2 percent for the first half.

Forward bookings for the first half of the 2020 financial year are reassuring. Bookings are slightly ahead of last year.

Revenue per seat for the first half of the 2020 financial year is expected to be up low to mid single digits year-on-year.

easyJet Holidays is expected to be at least breakeven for the financial year 2020.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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