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
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2
Q1 key stats
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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%)
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Q1 Revenue performance
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£0.79
£1.08
£2.87
£58.63
Q1 2020 @ CC Q1 2019 Reported Thomas Cook Administration
Ancillary Underlying Trading Q1 2020 Reported
£53.89
£58.56
FX
(£0.07)
RPS @ CC +8.8%
Reported RPS +8.7%
+1.5%
+2.0%
+5.3%
Cost performance Headline
Q1 2020 Reported
Q1 2020 Constant currency
Cost per seat including fuel 3.0%
Increase 2.6%
Increase
Cost per seat excluding fuel 2.6%
Increase 4.3%
Increase
Increases driven by:
• Lower capacity growth
• Ongoing (regulatory) inflationary pressure
• Ownership costs
• Crew pay agreements and retention levels
• French strikes
Offset by:
• Continued focus on cost, including Operational Resilience programme
• Up-gauging of fleet, as easyJet continues to move from A319s to A320s and A321s
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Operating hedges as at 31 December 2019
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
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Fuel and foreign exchange hedging
forward bookings
H1 2020 (Oct 2019 to Mar 2020) as at 18 Jan 2020
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90%
82%
55%
38%
57%
74%
91%
85%
56%
38%
58%
75%
Q1 Jan Feb Mar Q2 H1
H1 2019 H1 2020
H1 capacity outlook
H1 2020 (Oct 2019 to Mar 2020) as at 10 Jan 2020
Capacity change total short haul market
Competitors on easyJet markets
Capacity change easyJet markets
easyJet capacity change
5.4%
3.6%
6.9%
14.5%
0.2%
(0.2%)
0.5%
1.5%
H1 FY19
H1 FY20
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Sustainability
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Background • Strategy launched in November to take immediate
action on carbon emissions
• Continued focus on driving efficiency
• Reinventing aviation – Airbus, Wright Electric partnerships
• Carbon offsetting programme as an interim measure
Progress - Offsetting • Since 19 November we have offset the carbon
emissions from fuel used for all of our flights
• We have offset 800,000 tonnes of carbon so far
• 9 million easyJet customers taken net zero carbon flights
Positive customer reaction
• Those who have flown since the announcement, and are aware of the policy, are 7ppts more satisfied with their experience than those who are unaware
11% More customers say they will choose easyJet in the future*
*based on those who have flown and are aware that their flight was offset.
easyJet holidays - sUCCESSFULLY LAUNCHED
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• 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
Outlook
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Capacity (seats flown) > H1 c. 1.5% increase > FY c. 3% increase Revenue per seat at constant currency
> H1 revenue per seat performance (excl. easyJet holidays):
mid to high single digit increase
Cost per seat at constant currency
> H1 headline CPS excl. fuel (excl.easyJet holidays)
mid single digit increase
> FY headline CPS excl. fuel (excl. easyJet holidays):
low single digit increase (at normal levels of disruption)
FX / Fuel* > FY: c.£70 million positive movement from
foreign exchange rates on headline PBT > Circa £25m of this positive movement is part of the
total fuel bill
> FY: unit fuel costs £110 million to £170 million
adverse > Expected total fuel cost c.£1.64 billion
> Includes c.£25m investment in carbon offsetting
H1 2020 loss before tax – better than H1 2019
easyJet holidays – at least breakeven in 2020
* 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
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Items in orange denote updated guidance
Appendix
Q1 Passenger statistics
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13
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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