EasyJet 2010 Annual Report Download - page 3

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2010 2009 Change
Total revenue (£ million) 2,973.1 2,666.8 +11.5%
Profit before tax – reported (£ million) 154.0 54.7 +181.5%
Profit before tax – underlying1 (£ million) 188.3 43.7 +330.9%
Pre tax margin – underlying1 (%) 6.3 1.6 +4.7ppt
Return on equity (%) 8.6 5.5 +3.1ppt
Return on capital employed2 (%) 8.8 4.0 +4.8ppt
Basic EPS – (pence) 28.4p 16.9p +68.0%
Financial highlights
Continued growth in total revenue per seat up 5.1% (3.3% at constant currency), following
strong growth in the prior year (up 4.1% at constant currency) driven by the strength of the easyJet
network and good underlying consumer demand
Passenger numbers up 7.9% to 48.8 million and load factor increased by 1.5ppt to 87.0%
Reported profit before tax of £154.0 million delivered ahead of our original guidance, this
includes £27.3 million of costs resulting from volcanic ash disruption. Total impact of the volcano,
including lost contribution, estimated to be £57 million
Improvement in margins as underlying profit before tax1 increased by £144.6 million to
£188.3 million, primarily driven by a unit fuel cost reduction equivalent to £122.7 million
Disruption costs have had a significant impact on the financial results with a £97.9 million
increase versus the prior year. £27.3 million volcano related, £20.8 million snow related and
£49.8 million of costs (wet leasing and other costs, mainly EU2004/261 related), as a result of
Air Traffic Control (ATC) strike action and easyJet’s operational difficulties over the summer
Total underlying cost per seat1 (excluding fuel and currency movement) up 5.2% mainly driven
by disruption costs. Excluding the impact of additional disruption costs, underlying cost per seat1
(excluding fuel and currency movement) rose 2.2%
Continued strong cash generation, net cash flow from operations improved by £228.9 million
to £363.4 million. Gearing fell from 37.6% to 31.8%
Return on equity increased to 8.6% from 5.5% as easyJet delivered both capacity growth
and margin improvement
Note 1: Underlying measures exclude £27.3 million of cost relating to the volcanic ash cloud and £7.0 million loss on disposal of A321 aircraft in 2010 and £11.0 million
profit on disposal of A321 aircraft in 2009.
Note 2: Return on capital employed is calculated by dividing normalised operating profit after tax by average net debt plus average shareholders’ equity.
O v e r v i e w
2010 Business highlights
Results at a glance
Overview Business review Governance Accounts Other information
01
easyJet plc
Annual report and accounts 2010