EasyJet delivered their full year results

FAT PROPHETS: A strong summer for the European airline industry saw EasyJet post record full year results.  In the year to September 2015 the group saw pre-tax profits come in at the midpoint of guidance (£675m-£700m) with an 18% increase to £686m. Passenger numbers increased by 6% to 68.6m and revenue rose by 3.5% to £4.686bn but on a constant currency basis revenue was 6.5% higher.  Revenue per seat rose by 1.5%.

EasyJet’s pre-tax margin improved to 14.6% from 12.8% and the return on capital employed rose to 22.2% from 20.5%.  This was as the cost per seat fell by 3.4% with the key drivers being lower fuel prices and currency savings. Basic earnings per share increased by 21.5% to 139.1p and the dividend was increased by 21.6% to 55.2p.  This was the fifth consecutive year of record profits for EasyJet. Not bad for an airline!

The airline appears confident with a plan to buy 36 new aircraft from Airbus which are set to be delivered from 2018 to 2021.  The greater efficiency levels of these planes is expected to save £27m in costs by 2021. EasyJet forecasts passenger growth of 7% a year and expects to remain a “winter in its markets.”  The airline appears to have broader appeal than Ryanair with even David Cameron and Ed Miliband using the airline.

However, near-term trading may be weak with delays at airports in Paris and the costs related to getting passengers home from Egypt.  Further safety measures in Europe may increase security checks at airports and hit tourism.

For nearly 15 years, Fat Prophets remains UK’s premier equity research and funds management company. Register today to receive our special report Bargain Hunting, and a no obligation free trial to our popular email service

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @fatprophets

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Lending Works

• 

  Peter Gold

• 

  IQ Option

• 

  Fiona Craig