EasyJet has reported its financial results over the past year ending September 30. They saw positive growth in passenger traffic but ended with a 21% decrease in operating profit.
The operating profit reported by EasyJet fell to £401 million ($503 million) for the past year. The actual revenue rose from £4.67 billion to £5.05 billion, but costs excluding fuel increased from £3.06 billion to £3.58 billion. Fuel costs marked a decrease by £52 million to £1.06 billion.
The revenue per seat decreased by only 0.4% to £58.23, which in constant currency, however, is a fall by 4.5%. As per the carrier this is due to the low fuel price environment that entails high levels of capacity and competitive pricing environment.
Headline cost per seat excluding fuel increased 7.7% to £41.27 and 0.9% at constant currency. But due to high load factors and consumer-focused initiatives, the LCC saw growth in ancillary revenue, which rose 8.6% to £11.38 per seat and reached £986 million.
The other increase experienced by EasyJet was in the passenger numbers that grew by 9.7% to reach over 80 million travelers served. The load factor also rose by 1ppt to 92.6%.
Chief Executive Carolyn McCall expressed her overall satisfaction of the reported results given that it was a difficult year for aviation. She noted that the airline has focused on high-quality customer service and cost efficiency, which gave EasyJet an advantage.
The airline added 79 routes over the reported year, but closed 20 and plans to cease service from Hamburg in March 2018.
In the closest future, EasyJet expects to finalize the deal for acquiring Air Berlin’s assets that include up to 25 Airbus A320 aircraft, 1,000 crew members, and slots at Berlin Tegel airport.
For the next financial year, the Luton-based carrier expects fuel saving of £100-125 million and plans to grow capacity by 6%.