EasyJet announces soaring revenues

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Budget airline easyJet has recorded a jump in revenue following an increase in passenger numbers.

In Johan Lundgren’s first trading update since becoming chief executive, the Luton-based carrier reported that total revenue in the first quarter rose by 14.4% to £1.1 billion.

Passenger numbers grew by 8% to 18.8 million over the same period.

Revenue per seat rose 6.6% and cost per seat fell 3.3%, both at constant currency.

Mr Lundgren said: “EasyJet delivered a strong start to the financial year with a significant growth in revenue in part driven by an increase in passengers flown and strong growth in inflight and ancillary sales as we offer
more and better quality options for our passengers.”

He said the airline will “continue to focus on cost” after generating approximately £28 million in “lean savings” in the quarter.

“Our customer proposition will continue to drive both passenger growth and loyalty.

“We have great revenue growth, strong cost control, a robust operation and a strong balance sheet.”

The airline also announced several changes to its management structure.

Chief commercial officer Peter Duffy has agreed that “now is the right time for him to leave easyJet”, the carrier said.

This follows Mr Lundgren’s decision to move responsibility for pricing, revenue management and ancillary revenue from the commercial department to the airline’s strategy and network director, Robert Carey.

A new role of chief data officer has been created, with responsibility for coordinating the airline’s management of data to improve the customer experience, drive revenue, reduce cost and improve operational reliability.

Paul Moore, easyJet’s communications director, has resigned to take the same role at ITV, where he will work with Mr Lundgren’s predecessor, Dame Carolyn McCall.

The airline will shortly roll out its full summer 2018 schedule at its newly established base at Berlin Tegel, and expects to increase overall annual passenger numbers from 80 million to around 90 million.

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