Tag Archives: easyJet (UK)

easyJet to partner with Cathay Pacific, now has 130 aircraft registered in Austria for Brexit

Delivered on November 28, 2018

easyJet has made this announcement:

easyJet customers will be able to connect seamlessly between easyJet flights across its European network flying into London Gatwick Airport and onwards on Cathay Pacific flights, initially between London Gatwick and Hong Kong once it is live on Worldwide in the coming weeks.

Worldwide by easyJet has been consistently growing in popularity. Chicago is currently the most popular longhaul destination connecting through Rome while the Rome-Reykjavik connection is the most popular shorthaul connection. To date, more than 5,000 unique origins and destinations which have been booked in combination with partner airlines.

easyJet has leadership positions at more of Europe’s major airports and flies on more of Europe’s 100 largest routes than any other airline which makes it the most attractive European short haul airline partner. The introduction of this disruptive product opens up new 70m market segment for easyJet.

This addition of Cathay Pacific compliments easyJet’s existing relationships with long haul carriers Emirates, Virgin Atlantic, Norwegian, WestJet and Singapore Airlines.

Worldwide by easyJet launched in September 2017 enabling customers to connect easyJet flights through London Gatwick to long haul flights, with launch airline partners WestJet and Norwegian.  This quickly expanded to Thomas Cook Airlines, Corsair, La Compagnie and Loganair and the connections platform was extended to Milan Malpensa airport in December 2017. Virgin Atlantic and Emirates joined as partners in October 2018 followed by Singapore Airlines.

Worldwide by easyJet now connects to a total of 11 airports across Europe, including Amsterdam, Barcelona, Paris CDG and Orly, which in addition to London Gatwick, Milan Malpensa, Berlin Tegel and Venice Marco Polo, means that over half of the airline’s flights – and 53 million easyJet customers a year – will be able to connect to airline partner services and other easyJet flights in a single booking through easyJet’s digital booking portal.

In other news, easyJet also reported on its financial performance through December 31, 2018:

easyJet has delivered a good performance in the quarter with robust customer demand driving passenger and ancillary revenue which is in line with expectations. Underlying revenue per seat was positive, including good ancillary revenue growth. This was offset, as expected, by the impact from last year’s one-off revenue benefits, the dilutive impact of flying at Tegel and new accounting standards delaying the recognition of revenue. easyJet has made good progress with its cost and operational performance but both were affected by the impact of drone activity at London Gatwick over the Christmas period.

Commenting; Johan Lundgren, easyJet Chief Executive said:

“easyJet has made a good start to the 2019 financial year with robust customer demand and ancillary sales, driving solid revenue generation. This was underpinned by good operating and on-time performance across the network, with the exception of the disruption caused by the Gatwick closures due to drone sightings. There has been be a one-off cost impact from this incident, but underlying cost progress is in line with expectations. I am proud of the way our teams worked around the clock to mitigate the impact of the incident and looked after affected customers.

“Recognition of the easyJet brand continues to grow. We made good progress on our strategic initiatives; holidays, business, loyalty and data during the quarter.

“For the first half of 2019, booking levels currently remain encouraging despite the lack of certainty around Brexit for our customers. Second half bookings continue to be ahead of last year and our expectations for the full year headline profit before tax are broadly in line with current market expectations.” 

Revenue

Total revenue in the first quarter to 31 December 2018 increased by 13.7% to £1,296 million. Passenger revenue increased by 12.2% to £1,025 million and ancillary revenue increased by 19.9% to £271 million.

Passenger1 numbers in the quarter increased by 15.1% to 21.6 million, driven by an increase in capacity2 of 18.2% to 24.1 million seats which was slightly lower than originally planned due in part to the drone issues at London Gatwick and to late A321 deliveries from Airbus.

Load factor3 decreased by two percentage points to 89.7%, as anticipated, due to the one-off increase in prior year late demand and the dilutive impact of Tegel flying.

Total revenue per seat decreased by 4.2% at constant currency, in line with expectations. This performance has been driven by:

  • An increase in underlying revenue per seat of 1.5% due to:

–          Robust underlying demand and disciplined capacity growth by competitors on easyJet’s markets, supported by easyJet’s increasing brand recognition

–          Continued growth in ancillary revenue per seat through better bag and allocated seating sales

  • The negative impact from:

–          The dilutive impact of first time flying in Q1 at Berlin Tegel (where the schedule is still in the early stages of optimisation)

–          One-off benefits experienced in 2018 not being repeated:

  • Air Berlin and Monarch bankruptcies (Q1 2018 benefit of c.£30m)
  • Ryanair winter schedule cancellations last year (Q1 2018 benefit of c.£20m)

–          The impact of the move to IFRS 15 accounting standards (c.£8m revenue impact in Q1)

–          Cancelled flights and lost revenue resulting from the drone issue at London Gatwick (c.£5m revenue impact)

Cost

easyJet’s underlying cost performance has been solid and in line with expectations, before the cost impact of the drones at Gatwick. Headline cost per seat excluding fuel at constant currency increased by 1.0% in the quarter reflecting:

–          A £10 million cost impact of the drones at Gatwick relating to customer welfare costs (representing c.1ppt of cost per seat in Q1). The incident affected around 82,000 customers and led to over 400 flights being cancelled

–          Annualisation of crew pay deals; better than expected crew retention; and some additional inefficiency relating to Gatwick disruption

–          Ownership costs reflecting new aircraft year on year, some additional leasing costs resulting from late Airbus aircraft deliveries and the impact of IFRS 16 accounting

easyJet’s cost programme has continued to deliver substantial savings in particular in:

–        Airport costs, driven by discounts on additional passenger volumes, and

–        Fleet up-gauging from A319 ceo to A320 neo and A321 neo, albeit this has been marginally impacted by Airbus delivery delays

–        Reduced level of cancellations and delays over 3 hours despite the drone issue at Gatwick

Customer and operational performance

easyJet has improved its On-Time Performance (OTP) since the difficult 2018 summer. The closure of Gatwick airport due to the drone issues had a negative impact on OTP but after adjusting for this December network OTP was better at 81%.

 

OTP % arrivals within 15 minutes Oct Nov Dec Q1
Q1 ’19 76% 86% 77% 79%
Q1 ’18 81% 88% 74% 81% 

Traffic statistics

As announced at the full year results in November, easyJet will now be reporting monthly passenger statistics within its quarterly reports. Load factor was slightly lower than Q1 2018 due to one-off prior year benefits and the dilutive impact of Tegel flying.

easyJet experienced 764 cancellations in Q1 2019 compared to 1,051 cancellations in Q1 2018, with the biggest number of cancellations due to the drone issue at London Gatwick.

 

Oct Nov Dec Q1
Passengers (‘000) 8,578 6,182 6,831 21,592
Passenger growth 14.1% 15.6% 16.1% 15.1%
Load factor 90.5% 89.2% 89.2% 89.7% 

Sale and Leaseback

easyJet has entered into another planned sale and leaseback arrangement for 10 A319 aircraft which has generated £120 million in cash and further facilitates our fleet management strategy. Six were completed during the quarter and a further four were finalised on 8 January. This will be disclosed as a non-headline item in the income statement and is currently expected to be a small loss on disposal.

Brexit

easyJet is well prepared for Brexit. It now has 130 aircraft registered in Austria and has made good progress in ensuring it has a spare parts pool in the EU27 and in transferring crew licences, both of which will be completed by 29 March. Both the EU and the UK have committed to ensure that flights between the UK and EU will continue in the event of a no-deal Brexit.

Routes from Vienna:

In order to remain owned and controlled by EEA qualifying nationals, as required by EU regulations, easyJet has a number of options, including the use of the provisions contained in its Articles of Association which would permit it to suspend rights to attend and vote at meetings of shareholders and/or forcing the sale of shares owned by non-qualifying nationals as well as other potential actions. easyJet has increased its ownership by qualifying EEA (excluding UK) nationals to around 49%. 

Outlook

Despite the consumer and economic uncertainty created by Brexit, demand currently remains solid and forward bookings for the period after 29th March are robust.

For the year ending 30 September 2019, easyJet expects:

  • Full Year capacity to grow by c.10%; H1 2019 growth of c.15%
  • With approximately 40% of forward bookings secured for the second quarter, revenue per seat at constant currency for the first half is expected to decrease by mid to high single digits. This update reflects:

–          Continued positive underlying trading in line with Q1, but larger than previously anticipated phasing impact from H1 to H2 from the impact of new IFRS 15 accounting standards and the shift of Easter into H2. IFRS 15 is expected to have a negative impact of around £50 million in the first half and Easter is expected to have a negative impact of around £50 million in the first half. Both of these will reverse in the second half

–          A more competitive market in Berlin as well as constraints on our ability to deliver network optimisation as quickly as anticipated. easyJet now expects a loss in FY 2019 in Berlin

  • Full Year headline cost per seat excluding fuel at constant currency to be circa flat (assuming normal levels of disruption), using new IFRS 15 and 16 accounting standards and including the £10m cost impact from the drones issue at London Gatwick
  • Full Year unit fuel bill is likely to be £10 million to £60 million adverse4. The total fuel bill is expected to be c.£1.46 billion, reflecting a reduction in the price of oil since November and continued higher carbon pricing.
  • Foreign exchange4 movements will have a c.£10 million adverse impact on headline profit before tax
  • easyJet expectations for the full year are broadly in line with current market expectations5

Top Copyright Photo (all others by the airline): easyJet (Europe) Airbus A320-214 WL OE-ICR (msn 6885) ZRH (Rolf Wallner). Image: 944772.

easyJet (Europe) aircraft slide show:

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easyJet Gatwick statement for today

easyJet is planning to largely operate a full schedule of flights to and from London Gatwick Airport today, Saturday 22 December.  This includes six flights delayed from the closure of the runway yesterday evening.   We are experiencing some disruption due to crew being out of place, but we continue to do all possible to ensure we can get customers to their destinations at this important time of the year.

We are still advising all customers flying to and from London Gatwick today to check the status of their flight on our Flight Tracker www.easyjet.com/en/flight-tracker or via the app, before travelling to the airport, in case of further disruption.

The safety and wellbeing of our passengers and crew remains our highest priority.

easyJet orders additional 17 Airbus A320neo aircraft

easyJet (UK) Airbus A320-251N WL G-UZHB (msn 7705) (NEO) ZRH (Rolf Wallner). Image: 943811.

Airbus has reached an agreement with easyJet that extends the airline’s fleet plans into 2023, exercising purchase rights to firm orders for 17 A320neo aircraft.

This takes its combined order for the NEO to 147 (including 30 A321neo) and means easyJet has ordered 468 A320 Family aircraft  to date.

The aircraft are configured with 186 seats in a single class configuration and powered by CFM International LEAP engines.

easyJet currently operates a fleet of 316 A320 Family including 17 A320neo and three A321neo, making it the world’s largest airline operator of Airbus’ single aisle aircraft. easyJet serves over 130 European airports in some 31 countries operating over 1,000 routes.

The A320neo family is the world’s best-selling single aisle aircraft with more than 6,200 orders from over 100 customers since its launch in 2010. It incorporates latest technologies including new generation engines and Sharklet wing tip devices, which together deliver more than 15% in fuel savings from day one and 20% by 2020 with further cabin innovations. The A320neo also offers significant environmental performance with nearly 50% reduction in noise footprint compared to previous generation aircraft.

Top Copyright Photo (all others by easyJet): easyJet (UK) Airbus A320-251N WL G-UZHB (msn 7705) (NEO) ZRH (Rolf Wallner). Image: 943811.

easyJet aircraft slide show:

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easyJet flies record number of passengers for busiest day

easyJet welcomed over 330,000 passengers on its flights last Friday (September 14, 2018) in the busiest day in the airline’s history, with more than 1,941 flights taking off across its network.

This compared to 2017’s peak summer travel day on September 8, 2018 when more than 267,000 customers flew across the network.

In the UK alone, over 170,000 passengers flew to or from easyJet’s UK airports on over 1,007 flights setting another record for the most customers travelling with the airline on one day.

Barcelona, Faro, Malaga, and Palma de Mallorca topped the list of most popular destinations.

Photo: easyJet.

easyJet partners with Singapore Airlines to connect travellers between Europe and South East Asia with ‘Worldwide by easyJet’

easyJet (UK) Airbus A320-214 WL G-EZTT (msn 4219) BSL (Paul Bannwarth). Image: 943445.

easyJet has made this announcement:

easyJet has announced that Singapore Airlines and its low cost subsidiary airline Scoot will join the ‘Worldwide by easyJet’ global connections service, connecting easyJet customers with South East Asia with Singapore Airlines via Milan Malpensa airport and with Scoot through Berlin Tegel. The service is expected to be available within the coming months.

‘Worldwide by easyJet’ launched last year as the first ever low-fares carrier connection service and will now for the first time offer customers both a low-fares connection to Asia through Scoot, as well as the choice to connect with a full-service carrier through Singapore Airlines, named as the World’s Best Airline 2018. Singapore Airline group’s combined network connects over 135 destinations in more than 35 countries across five continents, with a combined fleet of over 180 aircraft.

Singapore Airlines and Scoot join other ‘Worldwide’ partner airlines Thomas Cook, Norwegian, WestJet, Loganair, La Compagnie, Corsair, Neos and Aurigny. 53 million easyJet customers a year will be able to book connecting flights with these airlines through the easyJet website to around 100 destinations across North America, the Caribbean, Africa, the Indian Ocean and soon to South East Asia with Singapore Airlines and Scoot.

Tens of thousands of easyJet customers are using Worldwide to connect through easyJet’s biggest European airport hubs including Gatwick, Milan Malpensa, Berlin Tegel and Venice Marco Polo, with the service due to go live in the coming months at Paris Charles de Gaulle, Paris Orly, Amsterdam Schiphol, Manchester and Edinburgh.

Worldwide by easyJet

‘Worldwide by easyJet’ is the first global airline connections service by a European low fares airline. Legacy airlines have traditionally offered connectivity through costly and complex interline and codeshare agreements and procedures.  With ‘Worldwide by easyJet’ these will be replicated by self-connect and sales partnerships through a digital, virtual hub which will offer the same sort of connectivity but more simply and efficiently.

easyJet has leadership positions at more of Europe’s major airports and flies on more of Europe’s 100 largest routes than any other airline which makes it the most attractive European short haul airline partner. The introduction of this disruptive product opens up new 70m market segment for easyJet.

All of this connectivity has been enabled by technology partner Dohop whose innovative platform allows easyJet customers to book connections and forward flights on easyJet.com.  Worldwide by easyJet will also allow easyJet passengers to connect with other easyJet flights through partner airports.

Worldwide by easyJet does not impact easyJet’s punctuality, its asset utilisation or operating model. The airline will not hold flights for connecting passengers. Worldwide by easyJet is subject to a 2 hour 30 minute ‘Minimum Connection Time’, which will give customers plenty of time to transfer between flights and/or terminals. Should a passenger miss a connecting flight they will be transferred to the next available flight.

Top Copyright Photo (all others by easyJet): easyJet (UK) Airbus A320-214 WL G-EZTT (msn 4219) BSL (Paul Bannwarth). Image: 943445.

easyJet aircraft slide show:

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easyJet launches first flight to Bordeaux from London Southend Airport, will hire 1200 cabin crews

easyJet has launched its first flight from London Southend Airport to Bordeaux in South West France. The route took off on July 25 is the first of four to launch this summer and will be supported by the arrival of a new aircraft at the base.

Operating three times a week, easyJet expects to carry out more than 30,000 passengers on the new Bordeaux route operating on Mondays, Wednesdays and Fridays.

easyJet is also set to launch new routes from Southend to summer holiday favourites Prague, Pula and Dubrovnik this summer helping to ensure the airline will carry over one million annual passengers to and from the airport for the first time this year with a 25% year on year rise in passenger numbers.

easyJet now operates 20 destinations from London Southend.

In other news, easyJet has also announced that it is to recruit more than 1200 new permanent and fixed term cabin crew positions, over half of which will be based in the UK.

The airline, which flies more than 300 aircraft on over 1000 routes in 33 countries, will offer its new cabin crew positions at some of easyJet’s largest bases across Europe. New recruits will fly on a modern fleet of Airbus, including the A321neo, and will have access to a number of rewards, high quality training and opportunities for career development.

The recruitment announcement follows the recent launch of easyJet’s cabin crew apprenticeship scheme, offering 25 apprentices a year-long programme combining training at easyJet’s Gatwick academy and on the job experience. easyJet was the first airline in the UK to offer apprenticeships under the new Government apprenticeship standards.

easyJet currently employs over 8,700 cabin crew who are at the forefront of the airline’s operations, ensuring the highest safety standards are met and providing friendly service for easyJet’s 90 million passengers every year.

Photos: easyJet.

easyJet passengers can now check-in luggage from home

easyJet, Europe’s leading airline, has launched a partnership with home bag drop service AirPortr, giving passengers travelling from London Gatwick the option to check their luggage in online and then have it collected from their doorstep by friendly, professional drivers and taken directly to the airport

Research shows that over three quarters of travellers would prefer to be luggage free for the day of their flight, which is why easyJet and AirPortr have partnered to provide this service allowing travellers start their trips at home.

AirPortr will pick up luggage from the passenger’s doorstep, and safely deliver it to easyJet’s bag drop before it is flown to one of the airline’s 110 destinations from Gatwick. Customers can then collect their baggage at their destinations baggage reclaim.

Since 2016, AirPortr have collected over 69,000 bags, skis and bikes which have been checked-in and delivered to more than 320 destination airport baggage reclaims around the world. easyJet is confident this new service will help make travelling even easier for its passengers.

The service is available for flights to any of easyJet’s destinations across Europe from London Gatwick, the airline’s biggest UK base. The premium product allows passengers to check in a piece of luggage and choose a 1 hour pick-up time slot for as little as £30. Alternatively, a £40 value product offers tremendous value for money, and includes collection of up to 4 pieces of luggage within a 3 hour window.

Photo: easyJet.