Ash and snow take a bite out of easyJet, but still profitable

Mother nature is going to cost easyJet as much as GBP100 million this year, but the UK-based LCC does not expect that to prevent it from posting a healthy profit. Winter snow disruptions in 2009 and 2010 resulted in losses of approximately GBP25 million. The recent ash-related airspace shut downs are expected to cost another GBP50-75 million. [2250 words]

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This report contains the following subheadings:

• First half loss, but positive EBITDAR
• Substantial cost reductions
• Unit revenue climbing
• Passenger numbers up 10.6% and unit revenue up 5.1%
• Ancillary revenue increasing its contribution: 20.9% of total
• Shifting to the mainland: 7.6% market share, up from 6.5%
• Solid capacity expansion, 15 new aircraft, 7 retired in the past six months
• Slowing fleet growth and volcanic disruption
• Cost increases only partly offset by the lower GBP
• Outlook healthy but challenging
• And Andy Harrison issues his last report, with new leader in the wings

This report contains the following charts and tables:

• easyjet first half results (GBP, millions): 2007-2010
• easyJet passenger & revenue growth: 2004-1HFY2010
• easyJet passenger traffic monthly breakdown: Oct-2008 to Apr 2010
• easyJet unit revenue: FY2005 to 1HFY2010
• easyJet ancillary revenue as a % of total revenue
• easyJet route launches and plans: 2010
• easyJet fleet