EasyJet Is Doing Well, Thank You
Oh, that must be one happy Sir Stelios, not only is easyJet offering a dividend but it will actually double what was first announced This is in line with the airline’s cantankerous founder/shareholder’s wish. But it is not entirely the fruit of another of Sir Stelios’s rants, easyJet actually has the means to do so.
The results are in and the airline has performed outstandingly well this year. Yesterday it reported revenue of £3.9bn and pre-tax profit of £317. That’s 11,6% growth over the preceding year, an astounding feat in a difficult economic climate. Double digit growth is all the more shocking when many legacy carriers are announcing brutal restructuring plans, or are about to do so.
It’s clear that easyJet may very well have benefited from the difficult European. The airline is no Wizzair or Ryanair but it sill sits on the bottom of the price range. Furthermore, it may be a bit early to call it but we may be witnessing the first fruits of easyJet’s efforts towards business travelers.
The company is no fool though and, looking forward, it is clear that it’s not betting everything on the intra-european market. While the company has plans to buy additional aircraft – plans which shouldn’t be foiled by Sir Stelios if we’re to believe Carolyn McCall – it’s clearly betting a lot on its burgeoning long-haul market. Granted it has some solid advantages with the Moscow slots it just snatched.
I’m rarely that optimistic but I must say, right now, easyJet seems ideally placed to enter the battle for the top spot among European carriers. One could be tempted to say easyJet is moving out of the low-cost model but I rather see as a transformation, one that promises to be very successful.