EasyJet 2012 Annual Report Download - page 19

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Sensitivities
A A $10 movement per metric tonne impacts the FY’13 fuel bill
by $4 million.
A A one cent movement in £/$ impacts the FY’13 profit before
tax by £1.6 million.
A A one cent movement in £/€ impacts the FY’13 profit before
tax by £1.2 million.
Outlook
The European macro-economic environment remains uncertain
and easyJet continues to be disciplined in its approach to asset
allocation. Weaker competitors have retrenched and there are clear
opportunities for profitable growth, thus easyJet will grow overall
capacity in seats flown by around 3.5% in the first half of the year.
Full year capacity growth is expected to be at a similar level to the
first half of the year.
Forward bookings for the first half of the 2013 financial year are
broadly in line with the prior year. With around 45% of winter seats
now booked, first half total revenue per seat at constant currency
is expected to be up by low to mid-single digits; as is usual at this
time of the year, it is too early to have any visibility on second half
revenue per seat performance.
easyJet expects cost per seat (excluding fuel and currency
movements) to increase by around 3% to 4% for the full year and
by around 4% to 5% for the first half assuming normal levels of
disruption and constant load factors. Cost increases will be
predominantly driven by increases in charges at regulated airports
and airport costs are likely to increase by £70 million at constant
currency for the 2013 financial year.
It is estimated that at current exchange rates and with fuel
remaining within its recent $1,000 m/t to $1,100 m/t trading range,
easyJet’s unit fuel bill for 2013 financial year would be up to
£30million higher (12). Inaddition, exchange rate movements
(excluding those related to fuel) are likely to have a further
£50million(12) negative impact in the 2013 financial year.
The challenges faced by easyJet are shared by all European airlines
but easyJet’s leading European network and cost advantage
combined with a disciplined approach to use of capital means
thateasyJet is well placed to continue to make travel easy and
affordable for customers and to continue to generate returns
andgrowth for shareholders.
Whilst there is always the potential for unexpected events to
temporarily impact financial results the Board of easyJet is confident
that its business model, strategy and people will consistently
continue to generate returns and growth for shareholders.
We are well placed to take advantage of opportunities due to the
strength and commitment of the people at easyJet for which
Iwould like to say thank you.
Carolyn McCall OBE
Chief Executive
(9) Source: Business traveller market share from PhoCusWright report October 2012.
(10) Source: Allocated seating data based on 32,000 respondents to end of
August2012.
(11) Source: Google.
(12) Rates as at 16 November 2012: USD $1.59 / £1, €1.25 / £1 and US $1,019 per
metrictonne.
Example only. Not a current offer.
We’re pleased to announce that we’ll soon be flying from
London Gatwick to Moscow, making travelling to the Russian
capital more affordable for everyone.
moscow
where are you going?
new route to moscow coming soon
£67*
from
RUSSIA.
FOR THE
PEOPLE.
one way pp
Business review
easyJet plc
Annual report and accounts 2012 17