EasyJet 2010 Annual Report Download

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Annual report
and accounts 2010

Table of contents

  • Page 1
    Annual report and accounts 2010

  • Page 2
    ... to the Company accounts 54 55 56 57 58 59 60 90 91 92 93 08 Business review Chief Executive's statement Strategy and KPIs Financial review Corporate responsibility 08 14 16 28 95 Other information Five year summary Glossary 95 96 34 Governance Directors' profiles Corporate governance Shareholder...

  • Page 3
    easyJet plc Annual report and accounts 2010 01 Overview Overview 2010 Business highlights Business review Results at a glance 2010 2009 Change Total revenue (£ million) Profit before tax - reported (£ million) Profit before tax - underlying1 (£ million) Pre tax margin - underlying1 (%) ...

  • Page 4
    .... 196 aircraft situated in 19 bases. Focused on European short-haul aviation Non-UK passengers million 2010 2009 2008 2007 2006 +14.7% 25.7 22.4 19.7 15.7 12.9 Increasing easyJet's geographic diversity Passengers by country â- UK â- Italy â- France â- Spain â- Switzerland â- Other Europe 47...

  • Page 5
    easyJet plc Annual report and accounts 2010 03 Overview Airports 125 - Aberdeen - Agadir - Ajaccio - Alicante - Almeria - Amsterdam - Antalya - Athens - Barcelona - Bari - Basel - Bastia - Belfast City - Belfast - Berlin Schöenefeld - Biarritz - Bilbao - Birmingham - Bodrum - Bordeaux - ...

  • Page 6
    ... of the newly-enlarged European Union by starting flights to Hungary and Slovenia. 2005 easyJet takes delivery of its 100th aircraft. It's a monumental change from the two leased aircraft it started with 10 years previously. 2006 Speedy Boarding is introduced, giving passengers greater choice over...

  • Page 7
    ... Annual report and accounts 2010 05 Overview Business review Governance 1999 The first series of 'Airline', which follows the lives of easyJet's staff and passengers, is shown on ITV, regularly attracting over 10 million viewers. 2000 easyJet floats on the London Stock Exchange at an offer price...

  • Page 8
    ...Board and strategy Carolyn McCall OBE and Chris Kennedy joined the easyJet Board in July of this year as Chief Executive and Chief Financial Officer, respectively. Both bring significant experience in operational roles within consumer facing businesses and the Board and I are delighted to be working...

  • Page 9
    ... costs and accessing new revenue opportunities, means that easyJet is poised to continue the strong operating cash generation of the past few years. Consequently, the Board now feel that the time is right to set in place a formula to trigger a dividend payment in years when the Company is profitable...

  • Page 10
    ... business model and strategy is delivering for customers and shareholders. We have a unique network which will enable us to expand in Europe as our routes and low fares are attractive to customers. Carolyn McCall OBE Chief Executive The leading positions that easyJet has built at primary airports...

  • Page 11
    easyJet plc Annual report and accounts 2010 09 Overview Business review Business model and vision easyJet's vision is to 'Turn Europe Orange'. This will be achieved by: - Ensuring no compromise on safety; - Giving our customers low fares to convenient airports at convenient times of the day ...

  • Page 12
    ... management structure and more effective communication with the crew. These measures will not incur additional net costs to easyJet but will deliver savings as disruption costs are reduced. Revenue Total revenue per seat was £53.07 in the year, an increase of 3.3% at constant currency; a good...

  • Page 13
    easyJet plc Annual report and accounts 2010 11 Overview 22% Mainland Europe Business review Ancillary revenues Ancillary revenues grew in the year by 43 pence per seat to £10.20 despite regulatory changes to the sales process for insurance products which led to a reduction in insurance income ...

  • Page 14
    ... constrained airports. The aircraft also operates with a cost per seat that is around 6% lower than the A319. The total fleet at 30 September 2010 comprised 196 aircraft. A further 45 easyJet specification aircraft deliveries are currently planned for arrival over the next three years. The fleet is...

  • Page 15
    ... plc Annual report and accounts 2010 13 Overview Business review Fleet as at 30 September 2010: Owned Operating leases Finance leases Future Unexercised Changes in committed purchase Total the year deliveries3 rights4 Hedging positions easyJet operates under a clear set of treasury policies...

  • Page 16
    easyJet plc report and accounts 2010 14 Annual Strategy and Key Performance Indicators 's vision is to Turn Europe Orange. We will do this by delivery against the following strategic priorities. Financial discipline We are committed to improving shareholder returns whilst remaining prudently ...

  • Page 17
    ... leisure customers. Revenue per seat £ 2010 2009 2008 53.07 50.47 45.51 Likely to be recommended % 2010 2009 2008 Results based on customer survey responses. 80 89 90 Where people make a difference We are committed to ensuring high employee satisfaction and engagement levels across the business...

  • Page 18
    easyJet plc report and accounts 2010 16 Annual Financial review 2010 confirmed the underlying strength of easyJet's business model and customer proposition. The Company continued to develop Europe's No.1 air transport network by increasing presence at the premier airports and continuing to enhance...

  • Page 19
    easyJet plc Annual report and accounts 2010 17 Overview Business review Network improvement The move in capacity towards continental Europe continued in 2010. Of the 6.0% overall growth in seats flown, the increase at continental European bases was 15.9%, with investment being focused in Milan ...

  • Page 20
    easyJet plc report and accounts 2010 18 Annual Financial review continued Operational measures 2010 2009 Change Financial measures 2010 2009 Change Seats flown (millions) Passengers (millions) Load factor Available Seat Kilometres (ASK) (millions) Revenue Passenger Kilometres (RPK) (millions) ...

  • Page 21
    easyJet plc Annual report and accounts 2010 19 Overview Business review Underlying financial performance 2010 £ million 2009 £ million Revenue 2010 £ million £ per Pence seat per ASK £ million £ per seat 2009 Pence per ASK Underlying profit before tax Volcanic ash disruption (Loss)/profit...

  • Page 22
    easyJet plc report and accounts 2010 20 Annual Financial review continued Costs 2010 Underlying costs * £ million £ per Pence seat per ASK £ million £ per seat 2009 Pence per ASK Operating costs 2010 Underlying costs * £ million £ per Pence seat per ASK £ million £ per seat 2009 Pence per...

  • Page 23
    ...per seat but decreased after adjusting for foreign exchange, benefiting from the new SR Technics contract completed in 2009. Maintenance costs have also benefited from the reduction in the number of leased aircraft compared to 2009. During the year nine Boeing 737s and three ex-GB Airways A320s were...

  • Page 24
    plc Annual report and accounts 2010 22 easyJet Financial review continued Build up of underlying pre-tax profit per seat Underlying PBT per seat £ per seat 6 5 4 3 2 1 0.83 2009 FX Revenue Fuel (excl. fuel) (excl. fx) (inc. fx) Disruption Interest and wet income leasing Other price and mix 2010 ...

  • Page 25
    easyJet plc Annual report and accounts 2010 23 Overview Business review Summary consolidated statement of financial position 30 September 2010 £ million 30 September 2009 £ million Change £ million Current and deferred taxation liabilities increased by £41.4 million to £175.4 million, ...

  • Page 26
    easyJet plc report and accounts 2010 24 Annual Financial review continued Significant contracts easyJet operates a fleet constituted mainly of Airbus* aircraft with some Boeings which are being phased out. Engines are provided by CFM International and IAE and the maintenance of the aircraft and ...

  • Page 27
    ...number one priority is the safety of our customers and people. We operate a strong safety management system through: - Fatigue Risk Management System; - Incident reporting; - Safety Review Board; - Safety Action Group. We also have response systems in place and provide training for crisis management...

  • Page 28
    ... plc report and accounts 2010 26 Annual Financial review continued Risk description Potential impact Mitigation Reputation Business continuity: access to facilities and key IT systems easyJet is dependent on a number of key IT systems and processes operated at London Luton airport and other key...

  • Page 29
    easyJet plc Annual report and accounts 2010 27 Overview Business review Risk description Potential impact Mitigation Financial risks Fuel price and currency fluctuations Sudden and significant increases in jet fuel price and movements in foreign exchange rates would significantly impact fuel ...

  • Page 30
    easyJet plc report and accounts 2010 28 Annual Corporate responsibility The success of our business is inextricably linked to the well-being of our customers, our people and the communities where we live and work. Our long-term performance and sustainability are dependent upon their understanding...

  • Page 31
    ...business, this year we have seen a number of changes across our leadership team. During the last 12 months we have seen the arrival of a new Chairman, Chief Executive, Chief Financial Officer, Chief Commercial Officer and IT Director. We have seized the opportunity to refresh our top management team...

  • Page 32
    ... 2010, easyJet employed 7,359 people (2009: 6,666), based throughout Europe as illustrated below: United Kingdom Switzerland France Spain Italy Germany Total 4,634 554 640 595 646 290 7,359 Reward easyJet offers a competitive rewards package and reviews salaries annually in line with market rates...

  • Page 33
    ... technological change across the industry, so our environment policy focuses on these long-term gains. easyJet is actively engaged with the major manufacturers and providing operational data to influence new technology. Governance Accounts Environment The aim of our business is to be as efficient...

  • Page 34
    ... we have both improved fuel efficiency and reduced noise levels at landing. Climate change is the dominant global environmental issue and it is also of long-term strategic importance to the airline industry. We have therefore focused our reporting and public policy work on this issue. -2.9ppt 84.40...

  • Page 35
    ... step-changes in technology and the right incentives to ensure that airlines and passengers fly as efficiently as possible. Entry into ETS Aviation entered ETS in 2010, which is the monitoring year for the reporting of our CO2 emissions and the Revenue Tonne Kilometres flown by easyJet. From 2012...

  • Page 36
    plc Annual report and accounts 2010 34 easyJet Governance Directors' profiles From left to right Keith Hamill, Sir Michael Rake, John Browett, Carolyn McCall OBE, David Michels, Chris Kennedy, Professor Rigas Doganis, David Bennett. (Sven Boinet not photographed).

  • Page 37
    ...is currently Deputy Chairman of Marks and Spencer plc and is also Non Executive Director of Strategic Hotels and Resorts Inc and Jumeirah Group. David has held a number of senior management and plc board positions in the leisure industry. He spent 15 years with Grand Metropolitan mainly in sales and...

  • Page 38
    ... the year, the Board considers that it and the Company have Meetings attended complied without exception with the best practice provisions of Director Board Section 1 of the Combined Code on Corporate Governance of June 2008. The Combined Code is issued by the Financial Reporting Carolyn McCall OBE...

  • Page 39
    ... of easyJet's corporate website, http://corporate.easyJet.com. The key terms set out that the Audit Committee will: - Serve as an independent and objective party to monitor the quality and timeliness of the financial reporting process and monitor the internal financial control system; - Review and...

  • Page 40
    ..., Financial and IT functional meetings; - The Executive Management Team meets quarterly to consider significant current risks. Individual department and overall business performance is reviewed. The reporting of significant risks to the Executive Management Team and the Board of the Company has...

  • Page 41
    ... senior management and to assist the Board with meeting its corporate governance and regulatory responsibilities. The role of internal audit and the scope of its work continue to evolve to take account of changes within the business and emerging best practice. Governance Accounts Other information

  • Page 42
    plc 40 easyJet Annual report and accounts 2010 Shareholder information Share capital Details of the movements in authorised and issued share capital during the year are provided in note 18 to the accounts. The rights and obligations attaching to the Company's ordinary shares are set out in the ...

  • Page 43
    easyJet plc Annual report and accounts 2010 Overview 41 Report on Directors' remuneration Business review Introduction This report sets out details of the remuneration policy for Directors, describes its implementation and discloses the amounts paid in the year ended 30 September 2010. The ...

  • Page 44
    ... performance, with superior rewards for exceptional performance. The remuneration packages of the Executive Directors and senior executives comprise a combination of basic salary, annual bonus, participation in share-based Long Term Incentive Plans and a very low level of benefits provision. easyJet...

  • Page 45
    ... into LTIP Governance Long Term Incentive Plan - Aligned to business plan - Incentivise long-term growth in return on equity (ROE) - Annual grant of performance shares - Opportunity to defer bonus and obtain future matching share awards - Monthly employer contribution of 7% of basic salary - Non...

  • Page 46
    ... at these levels during the financial year ending 30 September 2011. Bonus targets are aligned with easyJet's strategic objectives, with specific targets around its key performance indicators. Performance targets for Executive Directors' annual bonus opportunities in the financial year ending 30...

  • Page 47
    easyJet plc Annual report and accounts 2010 Overview 45 Business review LTIP awards to be granted in 2011 The policy for future LTIP awards and targets will be determined in line with the outcome of reviews being undertaken by management and the Board which are described in the Chief Executive's...

  • Page 48
    plc 46 easyJet Annual report and accounts 2010 Report on Directors' remuneration continued Benefits easyJet has a very low level of benefits provision and does not include, for example, company cars or final salary pensions as part of the package. External appointments Executive Directors are ...

  • Page 49
    ... of European Airlines comprises companies operating in a comparable sector. Total shareholder return easyJet 200 180 160 140 120 100 80 60 40 20 0 30 Sep 2005 30 Sep 2006 30 Sep 2007 30 Sep 2008 30 Sep 2009 30 Sep 2010 FTSE 250 index Comparator airlines Accounts Other information Source: Thomson...

  • Page 50
    ... emoluments, paid or payable by easyJet to the Directors of easyJet plc who served in the financial year ended 30 September 2010 are as follows: Pension contributions Figures stated in £'000s Salary/fee 2010 Bonus 2010 Total 2010 Total 2009 2010 2009 Executive Carolyn McCall OBE (appointed 1 July...

  • Page 51
    ... under review for Executive Directors and the wider senior management population. Remuneration for the new Chief Executive and Chief Financial Officer was agreed with them to secure their recruitment and is consistent with the Company's remuneration policies. 2010 Bonus The results and performances...

  • Page 52
    plc 50 easyJet Annual report and accounts 2010 Report on Directors' remuneration continued Directors' interests The following Directors hold direct interests in the share capital of easyJet: Number 30 September 2010 30 September 2009 Carolyn McCall OBE Chris Kennedy Sir Michael Rake Sir David ...

  • Page 53
    ... plc Annual report and accounts 2010 Overview 51 Business review Carolyn McCall OBE No. of shares/ options at 30 September 20091 Share/ options granted in year Shares/ options lapsed in year No. Shares/ of shares/ options options at exercised 30 September in year 20101 Exercise price (£) Market...

  • Page 54
    ...% vests) Return on equity (year ending 30 September 2012) Matching Share Awards No matching shares were granted to Executive Directors in the year under review. 11.0% 13.0% 15.0% Position against dilution limits easyJet complies with the 5% in five years guidelines on share dilution and current...

  • Page 55
    ... accounts, which have been prepared in accordance with IFRSs as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit of the Group and the Company; and - the Directors' report includes a fair review of the development and performance...

  • Page 56
    ... the accounts of easyJet plc for the year ended 30 September 2010 which comprise the Consolidated income statement, Consolidated statement of comprehensive income, Consolidated statement of financial position, Consolidated statement of changes in equity, Consolidated statement of cash flows, Company...

  • Page 57
    Overview easyJet plc Annual report and accounts 2010 55 Consolidated income statement Business review Notes Year ended 30 September 2010 £ million Year ended 30 September 2009 £ million Passenger revenue Ancillary revenue Total revenue Ground handling Airport charges Fuel Navigation Crew ...

  • Page 58
    plc 56 easyJet Annual report and accounts 2010 Consolidated statement of comprehensive income Year ended 30 September 2010 £ million Year ended 30 September 2009 £ million Profit for the year Other comprehensive income Cash flow hedges Fair value gains / (losses) in year (Gains) / losses ...

  • Page 59
    Overview easyJet plc Annual report and accounts 2010 57 Consolidated statement of financial position Business review 30 September 2010 £ million 30 September 2009 £ million Notes Non-current assets Goodwill Other intangible assets Property, plant and equipment Derivative financial instruments...

  • Page 60
    plc 58 easyJet Annual report and accounts 2010 Consolidated statement of changes in equity Share capital £ million Share premium £ million Hedging reserve £ million Translation reserve £ million Retained earnings £ million Total £ million At 1 October 2009 Total comprehensive income Share ...

  • Page 61
    Overview easyJet plc Annual report and accounts 2010 59 Consolidated statement of cash flows Business review Year ended 30 September 2010 £ million Year ended 30 September 2009 £ million Notes Cash flows from operating activities Cash generated from operations Net interest and other financing...

  • Page 62
    ... 1 Accounting policies Statement of compliance easyJet plc (the "Company") and its subsidiaries ("easyJet" or the "Group" as applicable) is a low cost airline carrier operating principally in Europe. The Company is a public limited company whose shares are listed on the London Stock Exchange under...

  • Page 63
    ... customers are not generally entitled to change flights or seek refunds once a flight has departed. Business combinations Business combinations in prior years were accounted for by applying the purchase method. The cost of the acquisition was measured at the aggregate of the fair values, at the date...

  • Page 64
    ... life of the lease. A number of operating leases require easyJet to make contingent rental payments based on variable interest rates; these are expensed as incurred. easyJet enters into sale and leaseback transactions whereby it sells to a third party rights to acquire aircraft. On delivery of the...

  • Page 65
    ... easyJet plc Annual report and accounts 2010 63 Business review Financial instruments Financial instruments are recognised when easyJet becomes a party to the contractual provisions of the relevant instrument and derecognised when it ceases to be a party to such provisions. Where market values...

  • Page 66
    ... time that the related employees' services are provided. Share-based payments easyJet has a number of equity-settled share incentive schemes. The fair value of share options is measured at the date of grant using the Binomial Lattice option pricing model. The fair value of awards under the Long Term...

  • Page 67
    Overview easyJet plc Annual report and accounts 2010 65 Business review Segmental disclosures easyJet has one operating segment, being its route network, based on management information provided to the Executive Management Team; which is easyJet's Chief Operating Decision Maker. Resource ...

  • Page 68
    ...settled share-based payment transactions) IFRIC 14 Prepayments of a Minimum Funding Requirement IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments Improvements to IFRS (2009) - items with an effective date of 1 January 2010 Effective for the year ending 30 September 2012 Amendments...

  • Page 69
    ...persons employed by easyJet was: 2010 2009 Flight and ground operations Sales, marketing and administration 6,577 310 6,887 6,186 Accounts 292 6,478 Employee costs for easyJet were: 2010 £ million 2009 £ million Wages and salaries Social security costs Pension costs Share-based payments 299...

  • Page 70
    plc 68 easyJet Annual report and accounts 2010 Notes to the accounts continued 4 Employees continued Key management compensation was: 2010 £ million 2009 £ million Short-term employee benefits Pension costs Payments for loss of office Share-based payments 5.6 0.2 0.3 1.4 7.5 4.5 0.2 - 0.7 5.4...

  • Page 71
    Overview easyJet plc Annual report and accounts 2010 69 Business review Reconciliation of the total tax charge / (credit) The tax for the year is lower than the standard rate of corporation tax in the UK as set out below: 2010 £ million 2009 £ million Profit on ordinary activities before tax ...

  • Page 72
    ... £ million Fair value (gains)/losses £ million Share-based payments £ million Total £ million At 1 October 2008 Charged / (credited) to the income statement Transfer from current tax liabilities Credited to other comprehensive income Credited to shareholders' equity At 30 September 2009 49...

  • Page 73
    ...-year strategic plan approved by the Board in November 2010, using the following key assumptions: Pre-tax discount rate (derived from weighted average cost of capital) Fuel price, per metric tonne, in US dollars Exchange rates: US dollar Euro Swiss franc 1.50 1.20 1.65 9-10% 720 Other information...

  • Page 74
    plc 72 easyJet Annual report and accounts 2010 Notes to the accounts continued 7 Goodwill and other intangible assets continued Cash flow projections beyond the forecast period have been extrapolated using growth rate scenarios ranging from zero up to an estimated average of long term economic ...

  • Page 75
    ... the acquisition of GB Airways in the year ended 30 September 2008, seven A321 aircraft were classified as assets held for sale. During the year ended 30 September 2009 three of these aircraft were sold realising a net profit of £11.0 million. At 30 September 2009, easyJet continued to market the...

  • Page 76
    ...to provide collateral should an aircraft be returned in a condition that does not meet the requirements of the lease and is refunded when qualifying heavy maintenance is performed, or is offset against the costs incurred at the end of the lease. Allowance for credit losses Movements in the provision...

  • Page 77
    Overview easyJet plc Annual report and accounts 2010 75 Business review Restricted cash comprises: 2010 £ million 2009 £ million Customer payments for packaged holidays Pledged as collateral to third parties: Aircraft operating lease deposits Other 18.0 29.7 7.9 55.6 23.4 44.4 4.5 72.3 14 ...

  • Page 78
    ...average share price for options exercised during the year was £4.01 (2009: £3.09). easyJet's employee share trusts hold the following shares. The cost of these has been deducted from retained earnings: At 30 September 2010 2009 Number of shares (million) Cost (£ million) Market value (£ million...

  • Page 79
    ... easyJet plc Annual report and accounts 2010 77 Business review 19 Share incentive schemes easyJet operates the following share incentive schemes, all of which are equity-settled. The change in the number of awards outstanding and weighted average exercise prices during the year, and the number...

  • Page 80
    ... on return on equity targets being achieved. Sharesave Sharesave is open to all employees on the UK payroll. Participants may elect to save up to £250 per month under a three year savings contract. An option is granted by the Company to buy shares at a discount of 20% from market price at the time...

  • Page 81
    Overview easyJet plc Annual report and accounts 2010 79 Business review The fair value of grants under the discretionary and sharesave schemes is estimated by applying the Binomial Lattice option pricing model using the following key assumptions. The fair value of grants under all other schemes ...

  • Page 82
    ...: Depreciation Loss / (profit) on disposal of property, plant and equipment Loss / (profit) on disposal of assets held for sale Amortisation of intangible assets Share-based payments Derivative financial instruments - time value Unrealised foreign exchange differences Changes in working capital and...

  • Page 83
    ... easyJet plc Annual report and accounts 2010 81 Business review 22 Financial instruments Carrying value and fair value of financial assets and liabilities The fair values of financial assets and liabilities, together with carrying values, at each reporting date are as follows: Amortised cost...

  • Page 84
    ... uses forward contracts to hedge US dollar transaction currency risk (comprising fuel, leasing and maintenance payments and, in the prior year only, capital expenditure), jet fuel price risk and euro and Swiss franc revenues. Where these hedges are assessed as highly effective, gains and losses are...

  • Page 85
    ... easyJet plc Annual report and accounts 2010 83 Business review The cumulative net gains / (losses) deferred in shareholders' equity and their expected maturities are as follows: At 30 September 2010 Within 1 year £ million 1-2 years £ million Total £ million Hedges of transaction currency...

  • Page 86
    ... as a going concern whilst delivering shareholder expectations of a strong capital base as well as returning benefits for other stakeholders and optimising the cost of capital. easyJet manages its capital structure in response to changes in both economic conditions and strategic objectives. The cash...

  • Page 87
    ... contracts - payments 138.5 338.6 (1,482.2) 1,541.3 150.5 - (217.7) 232.8 418.9 - - - 525.1 - - - Governance The maturity profile has been calculated based on spot rates for the US dollar, euro, Swiss franc and jet fuel at close of business on 30 September each year. Credit risk management...

  • Page 88
    ... the impact on profit or loss after tax for the year and other comprehensive income on financial instruments held at the reporting date. It does not reflect changes in revenue or costs that may result from changing currency rates, interest rates or fuel prices. Sensitivity is calculated based on all...

  • Page 89
    ... easyJet plc Annual report and accounts 2010 87 Business review 24 Leasing commitments Commitments under operating leases Aircraft 2010 £ million 2009 £ million 2010 £ million Other assets 2009 £ million Total commitments under non-cancellable operating leases due: Not later than one year...

  • Page 90
    ....2 18.2 2,666.8 Southern Europe comprises countries lying wholly or mainly south of the border between Italy and Switzerland, plus France. easyJet's non-current assets principally comprise its fleet of aircraft (including 62 held under operating leases). All of these aircraft are registered in the...

  • Page 91
    ... be replaced by various new rights, freedoms and limitations on the conduct its commercial operations to the mutual benefit of both the Company and easyGroup; - The Company will adopt certain service level indices. The service levels will be reviewed annually and performance against these will be...

  • Page 92
    plc 90 easyJet Annual report and accounts 2010 Company statement of financial position 30 September 2010 £ million 30 September 2009 £ million Notes Non-current assets Investments in subsidiary undertakings Current assets Amounts due from subsidiary undertakings Current liabilities Amounts due ...

  • Page 93
    ... easyJet plc Annual report and accounts 2010 91 Company statement of changes in equity Business review Share capital £ million Share premium £ million Retained earnings £ million Total £ million At 1 October 2009 Comprehensive income for the year Share incentive schemes Proceeds from shares...

  • Page 94
    plc 92 easyJet Annual report and accounts 2010 Company statement of cash flows Year ended 30 September 2010 £ million Year ended 30 September 2009 £ million Notes Cash flows from operating activities Cash generated from / (used by) operations Interest received Dividends received Net cash ...

  • Page 95
    ... easyJet plc Annual report and accounts 2010 93 Notes to the Company accounts Business review a) Income statement and statement of comprehensive income In accordance with Section 408 of the Companies Act 2006, the Company is exempt from the requirement to present its own income statement...

  • Page 96
    plc 94 easyJet Annual report and accounts 2010 Notes to the Company accounts continued c) Reconciliation of operating profit to cash generated from operations 2010 £ million 2009 £ million Operating profit Adjustments for non-cash items: Unrealised foreign exchange differences Dividends ...

  • Page 97
    ... easyJet plc Annual report and accounts 2010 95 Five year summary Year end to 30 September Business review 2010 £ million 2009 £ million 2008 £ million 2007 £ million 2006 £ million (re-presented) Income statement Revenue EBITDAR Operating profit Profit before tax Profit for the year...

  • Page 98
    ... of year Available Seat Kilometres (ASK) Average fare Block hours Cost per ASK Cost per seat Cost per seat, excluding fuel EBITDAR Gearing Load factor Operated aircraft utilisation Other costs Passengers Profit before tax per seat Return on capital employed (ROCE) Return on equity (ROE) Revenue...

  • Page 99
    ... Williams and all of our employees across our network. This annual report is printed on Revive Pure white silk, this paper is produced from 100% recycled fibre. Both the paper mill and printer involved in the production support the growth of responsible forest management and are both accredited to...

  • Page 100
    Hangar 89 London Luton Airport Luton Bedfordshire LU2 9PF