EasyJet share price: 3 things we learnt from its half-year results
The low-cost airline delivered a strong set of results amid a highly competitive market that underpinned the need for it to continue to focus on its cost, customer and operational initiatives to end the year on a high.
In the first six months of its new financial year, easyJet delivered results in line with expectations, with the low-cost airline seeing a 13.3% increase in passenger numbers that helped increase revenues by 7.3% to £2.34 billion.
Its impressive results highlight its growth strategy is capable of bearing fruit and proves that the airline’s focus on cost, customers and operational initiatives that it has championed will be key to rounding off the remainder of the year on a high. But what else is there to glean from EasyJet’s recent trading update?
EasyJet full-year results on course to meet expectations
After its half-year results, the outlook for the low-cost airline looks promising, with easyJet’s headline profit expectations for 2019 left unchanged and in line with market forecasts.
To remain on track amid such a competitive climate and with a myriad of headwinds makes easyJet’s accomplishments so far this year ever more impressive, with investors hoping the airline will continue its current trajectory over the next six months.
Cost control at easyJet remains a priority
Just as it has been for the last six months of trading, cost control continues to be a major focus for easyJet, with the airline looking to improve efficiency and innovation through data and cost-cutting measures.
Over the course of 2019 the airline plans to deliver more than £100 million in cost savings, which will be essential to easyJet’s success in such a highly competitive market where there is considerable pressure being applied on margins due to rivals waging a battle of attrition over fare prices.
easyJet ready to compete this summer
With the summer season fast approaching, easyJet’s CEO Johan Lundgren believes that the airline is ‘well-equipped to succeed’ against its rivals via several short-term customer and trading initiatives.
These initiatives aim to increase sales at easyJet by appealing to what customer value most: money, punctuality and great service.
‘We have invested in the operation by doubling our standby aircraft and changed our schedules so that even though the external operating environment over the summer is not set to improve, we plan to alleviate the impact on our customers,’ Lundgren said.
‘In total we are now the number one airline at 27 airports across the network, up from 18 two years ago. Our loyal customers are choosing us time and again and now account for 76% of total bookings, an increase of seven million since last year,’ he added.
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