Q1 2020 Analyst & investor presentation - 21 January 2020
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Q1 2020 Analyst & investor presentation 21 January 2020
Q1 performance – momentum continues
1. Strong revenue trend
• Revenue initiatives delivering
• Robust demand across Europe, low competitor capacity growth in the market
• Upgrade to RPS guidance
2. Underlying cost performance as expected
• Delivering on cost programme
• No change to full year guidance
3. easyJet holidays
• Successful launch
4. Strong operational performance
• Improved OTP and CSAT score
2
2
Q1 key stats
Q1 ‘20 Q1 ’19 Change
Favourable/(adverse)
Passengers (m) 22.2 21.6 2.8%
Load factor (%) 91.3% 89.7% 1.6ppts
Seats (m) 24.3 24.1 1.0%
Average sector length (km) 1,106 1,079 2.6%
Passenger revenue (£m) 1,124 1,025 9.7%
Ancillary revenue (£m) 301 272 10.8%
Total revenue (£m) 1,425 1,296 9.9%
Total airline revenue per seat (£) 58.56 53.89 8.7%
Total airline revenue per seat @ constant currency (£) 58.63 53.89 8.8%
Total airline headline CPS (£) (58.40) (56.71) (3.0%)
Total airline headline CPS @ constant currency (£) (59.41) (56.71) (2.6%)
Total airline headline CPS, ex-fuel @ constant currency (£) (45.29) (43.42) (4.3%)
3
3Q1 Revenue performance Reported RPS +8.7%
RPS @ CC +8.8%
+5.3% £58.63 (£0.07) £58.56
£2.87
+2.0%
£1.08
+1.5%
£0.79
£53.89
Q1 2019 Reported Thomas Cook Ancillary Underlying Trading Q1 2020 @ CC FX Q1 2020 Reported
Administration
4Cost performance
Q1 2020 Q1 2020
Headline Reported Constant currency
3.0% 2.6%
Cost per seat including fuel
Increase Increase
2.6% 4.3%
Cost per seat excluding fuel
Increase Increase
Increases driven by: Offset by:
• Lower capacity growth • Continued focus on cost, including Operational Resilience
programme
• Ongoing (regulatory) inflationary pressure
• Up-gauging of fleet, as easyJet continues to move from
• Ownership costs A319s to A320s and A321s
• Crew pay agreements and retention levels
• French strikes
5Fuel and foreign exchange hedging
Fuel requirement US dollar requirement Euro Surplus
Six months to 31 March 2020 76% @ $631/MT 74% @ 1.35 75% @ 1.11
Full year ending 30 September 2020 71% @ $654/MT 70% @ 1.35 74% @ 1.11
Full year ending 30 September 2021 51% @ $638/MT 53% @ 1.31 61% @ 1.11
6 Operating hedges as at 31 December 2019forward bookings
H1 2019 H1 2020
90% 91%
85%
82%
74% 75%
56% 57% 58%
55%
38% 38%
Q1 Jan Feb Mar Q2 H1
7 H1 2020 (Oct 2019 to Mar 2020) as at 18 Jan 2020H1 capacity outlook
14.5%
H1 FY19
H1 FY20
6.9%
5.4%
3.6%
1.5%
0.2% 0.5%
(0.2%)
Capacity change total short Competitors on Capacity change easyJet capacity change
haul market easyJet markets easyJet markets
8 H1 2020 (Oct 2019 to Mar 2020) as at 10 Jan 2020Sustainability
Background Positive customer reaction
• Strategy launched in November to take immediate • Those who have flown since the announcement,
action on carbon emissions and are aware of the policy, are 7ppts more
• Continued focus on driving efficiency satisfied with their experience than those who are
• Reinventing aviation – Airbus, Wright Electric unaware
partnerships
• Carbon offsetting programme as an interim
measure
11%
Progress - Offsetting
• Since 19 November we have offset the carbon
More customers say
emissions from fuel used for all of our flights they will choose
• We have offset 800,000 tonnes of carbon so far easyJet in the
• 9 million easyJet customers taken net zero carbon
flights future*
9 *based on those who have flown and are aware that their flight was offset.
9easyJet holidays - sUCCESSFULLY LAUNCHED
• Successful launch on 28 November 2019
• with c700 directly contracted hotels
• to over 100 destinations
• 85% of customers cite great value, hotel choice and
website ease of use as the primary driver of booking
• 50% of bookings to directly contracted hotels
• Strong demand on flexible dates
• c50% of booking outside the traditional 7 or 14 night
stay
• Performance is in line with expectations - to at least
break even in year
10
10Outlook Items in orange denote updated guidance
Capacity (seats flown) FX / Fuel*
> H1 c. 1.5% increase > FY: c.£70 million positive movement from
> FY c. 3% increase foreign exchange rates on headline PBT
> Circa £25m of this positive movement is part of the
Revenue per seat at constant currency total fuel bill
> H1 revenue per seat performance (excl. easyJet
> FY: unit fuel costs £110 million to £170 million
holidays):
adverse
mid to high single digit increase
> Expected total fuel cost c.£1.64 billion
> Includes c.£25m investment in carbon offsetting
Cost per seat at constant currency
> H1 headline CPS excl. fuel (excl.easyJet holidays)
mid single digit increase H1 2020 loss before tax – better than H1 2019
> FY headline CPS excl. fuel (excl. easyJet holidays):
easyJet holidays – at least breakeven in 2020
low single digit increase (at normal levels of
disruption)
11 * Based on fuel spot price range of $600 - $700. Includes impact of ETS carbon scheme. Based on FX rates USD to GBP 1.33, EUR to GBP 1.18
11Appendix
Q1 Passenger statistics
October 2020 2019 Change
Passengers(m) 8.8 8.6 2.4%
Load Factor 91.6% 90.5% 1.1ppts
November 2020 2019 Change
Passengers(m) 6.2 6.2 (0.3%)
Load Factor 90.8% 89.2% 1.6ppts
December 2020 2019 Change
Passengers(m) 7.2 6.8 6.0%
Load Factor 91.3% 89.2% 2.1ppts
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