EasyJet traffic takeover GB Airways
March 7, 2008
Low-cost airline, easyJet, today revealed a 22 per cent rise in passenger numbers in February as the company’s performance was boosted by its £103 million acquisition of British Airways’s franchisee GB Airways.EasyJet’s February traffic figures were an improvement on its performance in January and December and add weight to the group’s argument that it could be a beneficiary of any slowdown in consumer spending.
EasyJet said that it carried 3.24 million passengers in February, an increase of 22.4 per cent on the same month in 2007. The airline’s load factor - the proportion of seats in an aeroplane that are filled - also increased, by 1.4 percentage points to 84.3 per cent.
The figures are particularly significant because they cover the period in which GB Airways, under the BA brand, has been wound down. The company said that GB had traded well during its transition period, with a 4.4 per cent increase in the number of passengers carried and a 7.9 per cent increase in its load factor - to 90.5 per cent.
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GB is primarily a Gatwick-based operator, covering destinations across southern Europe and northern Africa with a fleet of 15 Airbus aircraft. Despite the takeover at the end of last year, GB Airways is operating under the BA brand until the end of this month, after which flights will operate under the easyJet logo.
Gert Zonneveld, Panmure Gordon analyst, maintained his buy recommendation on the stock today. “Overall the numbers look good,” he said.
Rival low-cost airlines, easyJet and Ryanair, have made very different predictions of how they will fare this year if there is a significant downturn in the economy. EasyJet recently predicted a 20 per cent improvement in profits, despite growing headwinds from tougher trading conditions. Ryanair, however, has warned next year’s profits could be half this year’s €470 million (£351 million), due to high fuel costs and falling demand.
British Airways shares fell 8 per cent yesterday after the UK’s biggest full service airline highlighted tougher trading conditions when it said operating margins were likely to be 7 per cent in the next financial year, rather than the 10 per cent forecast to be achieved in this financial year.
Meanwhile, Aer Lingus said total passenger numbers grew by 15 per cent in February on the same period in 2007. This was based on a 15.6 per cent increase in passenger numbers on short-haul flights and a 10 per cent increase on long haul.
The February load factor on short haul was down to 72.1 per cent from 75.1 per cent in 2007, following a 17.9 per cent increase in capacity for the same period.
www.easyjet.com
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