EasyJet 2010 Annual Report Download - page 15

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Fleet as at 30 September 2010:
Owned Operating
leases Finance
leases Total Changes in
the year
Future
committed
deliveries3
Unexercised
purchase
rights4
easyJet
A320
family 122 52 8182 27 45 88
Boeing
737-700 – 8 – 8 (9) – –
GB
Airways
A320
family 4 2 – 6 (3) 2 –
126 62 8196 15 47 88
Note 3: The 45 future easyJet deliveries and 2 ex-GB Airways deliveries are
anticipated to be delivered over the next three financial years, 25 in 2011, 18 in
2012 and 4 in 2013.
Note 4: Purchase options and rights may be taken on any A320 family aircraft and
are valid until 2015.
The total eet plan over the period to 30 September 2013 is as follows:
easyJet
A320 family Boeing
737-700 GB Airways
A320 family5Total aircraft5
At 30 September 2010 182 8 6 196
At 30 September 2011 202 2 – 204
At 30 September 2012 214 – – 214
At 30 September 2013 218 – 2 220
Note 5: Four ex-GB Airways A321 aircraft exited the fleet in November 2010.
Hedging positions
easyJet operates under a clear set of treasury policies agreed by the
Board. The aim of easyJet’s hedging policy is to reduce short term
earnings volatility and therefore the Company hedges forward, on a
rolling basis, between 50% and 80% of the next 12 months anticipated
requirements and between 20% and 50% of the following 12 months
anticipated requirements. Details of our current hedging arrangements
are set out below:
Percentage of anticipated
requirement hedged Fuel
requirement US dollar
requirement
Euro
surplus
sale
Full year ending
30 September 2011 70% 66% 64%
Rate $734/MT $1.60 €1.10
Full year ending
30 September 2012 23% 40% 21%
Rate $802/MT $1.57 €1.11
Outlook
Capacity measured in seats own, adjusting for the impact of disruption
is expected to increase compared to the prior year by around 8% as
easyJet continues with its strategy of carefully targeting growth. On a
reported basis capacity is expected to be up by 12% for the full year and
14% in the rst half. The current expectation is that competitor capacity
on easyJet routes will be up by low single digits.
Over 45% of the available rst half seats now sold and forward bookings
are in line with the prior year. Total revenue per seat in the rst half is
expected to be broadly at on a reported basis (at current exchange
rates)6 versus the prior year and slightly up by at constant currency
despite a greater proportion of A320 aircraft in the eet and the impact
of increased APD in the UK and its introduction into Germany.
Total reported cost per seat excluding fuel (at current exchange rates)6
is anticipated to fall by around 4% on an underlying basis, assuming
normal levels of disruption. Improvements in maintenance and
ownership costs and a reduction in disruption related costs will offset
the impact of planned increases in crew costs as we build more resilience
in to theoperation.
The economic outlook in Europe remains uncertain and the continuing
level of ATC industrial action is causing disruption to our ying
programme and driving additional cost. However, the strength of the
easyJet network combined with its proposition of offering consumers
thebest value fares to convenient airports means that easyJet is well
positioned for future success.
Note 6: US$1.60/£, €1.18/£ and US$788 per metric tonne at noon on
15 November 2010.
Carolyn McCall OBE
Chief Executive
Hedged against fuel price increases
We have 70% of our anticipated fuel requirement
for 2011 hedged using forwards at $734/MT.
70%
Overview Business review Governance Accounts Other information
13
easyJet plc
Annual report and accounts 2010