EasyJet 2014 Annual Report Download - page 138

Glossary
Adjusted capital employed
Capital employed plus seven times operating lease costs
incurred in the year.
Adjusted net cash/debt
Net cash/debt less seven times operating lease costs incurred
in the year.
Aircraft dry/wet leasing
Payments to lessors under dry leasing arrangements relate
solely to the provision of an aircraft. Payments to lessors
under wet leasing arrangements relate to the provision of
aircraft, crew, maintenance and insurance.
Aircraft owned/leased at end of year
Number of aircraft owned or on lease arrangements of over
one month’s duration at the end of the period.
Available seat kilometres (ASK)
Seats flown multiplied by the number of kilometres flown.
Average adjusted capital employed
The average of opening and closing adjusted capital employed.
Average capital employed
The average of opening and closing capital employed.
Average fare
Passenger and ancillary revenue divided by passengers.
Block hours
Hours of service for aircraft, measured from the time that
the aircraft leaves the terminal at the departure airport to the
time that it arrives at the terminal at the destination airport.
Capital employed
Shareholders’ equity less net cash/debt.
Cost per ASK
Revenue less profit before tax, divided by available seat
kilometres.
Cost per seat
Revenue less profit before tax, divided by seats flown.
Cost per seat, excluding fuel
Revenue, less profit before tax, plus fuel costs, divided by
seats flown.
EBITDAR
Earnings before interest, taxes, depreciation, amortisation,
aircraft dry leasing costs, and profit or loss on disposal of
assets held for sale.
Gearing
Adjusted net cash/debt divided by the sum of shareholders’
equity and adjusted net cash/debt.
Load factor
Number of passengers as a percentage of number of seats
flown. The load factor is not weighted for the effect of varying
sector lengths.
Net cash/debt
Total borrowings less cash. (Cash includes money market
deposits but excludes restricted cash).
Normalised operating profit after tax
Reported operating profit adjusted for one-third of operating
lease costs incurred in the year, less tax at the prevailing UK
corporation tax rate at the end of the financial year.
Operated aircraft utilisation
Average number of block hours per day per aircraft operated.
Other costs
Administrative and operational costs not reported elsewhere,
including some employee costs, compensation paid to
passengers and the profit or loss on the disposal of non-
aircraft property, plant and equipment.
Passengers
Number of earned seats flown. Earned seats comprises
seats sold to passengers (including no-shows), seats provided
for promotional purposes and seats provided to staff for
business travel.
Profit before tax per seat
Profit before tax divided by seats flown.
Return on equity
Profit for the year divided by the average of opening and
closing shareholders’ equity.
Revenue
The sum of seat revenue and non-seat revenue.
Revenue passenger kilometres (RPK)
Number of passengers multiplied by the number of kilometres
those passengers were flown.
Revenue per ASK
Revenue divided by available seat kilometres.
Revenue per seat
Revenue divided by seats flown.
ROCE
Return on capital employed.
ROCE (excluding lease adjustments)
Operating profit, less tax at the prevailing UK corporation
tax rate at the end of the financial year, divided by average
capital employed.
ROCE (including lease adjustments)
Normalised operating profit after tax divided by average
adjusted capital employed.
Seats flown
Seats available for passengers.
Sector
A one-way revenue flight.
136 easyJet plc Annual report and accounts 2014