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EasyJet shrugs off Paris attacks as revenue falls

Budget carrier boosted passenger numbers by 8.1% to 16.1mln in the three months to December 31

EasyJet (LON:EZJ) took a hit from lower demand following the Paris terror attacks but said trade was now picking up again.

The Luton-based carrier said passengers carried increased 8.1% to 16.1mln in the three months to December 31.

Capacity rose 7.3% to 17.8 million seats and the load factor - how full its aircraft were - lifted 0.6 percentage points to 90.3%.

The impact of the events in Egypt and Paris offset strong revenue per seat performance in October, resulting in lower demand and yield in November and December.

For the first quarter as a whole, revenue per seat was down by 3.7% at constant currency.

The Paris attacks had the effect of reducing revenue per seat by about 2% and the impact of the cancellation of flying to Sharm El Sheikh hit revenue per seat by 1.5% during the quarter.

But EasyJet said forward bookings for the second quarter were showing a marked improvement in revenue per seat compared to November and December.

The budget airline said it had benefited from cost-cutting, lower fuel prices and resilient trading, meaning annual profits in the year to September 30 would match market expectations.

Chief executive Carolyn McCall said: "The EasyJet customer-centric strategy of giving passengers low fares to primary airports continues to be executed well.

"This year we will consolidate that with a relentless focus on cost reduction. This will ensure EasyJet continues to increase revenue, profit and dividends."

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