EasyJet 2014 Annual Report Download - page 130

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128 easyJet plc Annual report and accounts 2014
Notes to the accounts continued
23 Financial risk and capital management continued
Sensitivities are calculated based on a reasonably possible change in the rate applied to the value of financial instruments held
at each statement of financial position date.
Currency rates
At 30 September 2014
US dollar
+10%(1)
£ million
US dollar
-10%(2)
£ million
Euro
+10%(1)
£ million
Euro
-10%(2)
£ million
Interest rates
1% increase
£ million
Fuel price
10% increase
£ million
Income statement impact: gain/(loss) 23 (18) 4 (3) 4 –
Impact on other comprehensive income:
increase/(decrease) 173 (142) (69) 56 – 115
Currency rates
At 30 September 2013
US dollar
+10%(1)
£ million
US dollar
-10%(2)
£ million
Euro
+10%(1)
£ million
Euro
-10%(2)
£ million
Interest rates
1% increase
£ million
Fuel price
10% increase
£ million
Income statement impact: gain/(loss) 22 (15) 4 (3) 5 –
Impact on other comprehensive income:
increase/(decrease) 180 (150) (78) 64 – 113
(1) GBP weakened.
(2) GBP strengthened.
The market risk sensitivity analysis has been calculated based on spot rates for the US dollar, euro and jet fuel at close of
business on 30 September each year.
24 Leasing commitments
Commitments under operating leases
Aircraft Other
2014
£ million
2013
£ million
2014
£ million
2013
£ million
Total commitments under non-cancellable operating leases due:
Not later than one year 105 110 1 2
Later than one year and not later than five years 286 293 3 4
Later than five years 68 102 3 3
459 505 7 9
easyJet holds 72 aircraft (2013: 72 aircraft) under operating leases, with initial lease terms ranging from five to ten years.
easyJet is contractually obliged to carry out maintenance on these aircraft, and the cost of this is provided based on the
number of flying hours and cycles operated. Further details are given in the critical accounting policies section of note 1.
Commitments under finance leases
2014
£ million
2013
£ million
Minimum lease payments fall due as follows:
Not later than one year 15 14
Later than one year and not later than five years 114 121
Later than five years 76 85
205 220
Future finance charges (19) (25)
186 195
easyJet holds 11 aircraft (2013: 11 aircraft) under finance leases with 10-year initial terms. Further details are given in notes 9 and 15.