Julian Bray Aviation Expert writes: Is this really a false dawn or has easyJet's new chief executive, Johan Lundgren, fallen on his feet as the airline presents his recent arrival with an impressive trading statement? At a time when aviation stories suggest it's a turbulent time for airlines, easyJet posted an impressive 14.4 per cent advance to £1.1bn three months to 31 December.
Johan Lundgren, appointed in November, and clearly has been busy. Out is chief commercial officer Peter Duffy.
Clearly the airline has cashed in on corporate turbulence elsewhere in the industry. A few months ago, Monarch collapsed, Ryanair cancelled flights on a epic scale due to a scheduling meltdown, and to a lesser extent, a pilot shortage. To complete the carnage Alitalia and Air Berlin - with easyJet picking up parts of the failed Air Berlin - filed for administration.
Recognising his good fortune Mr Lundgren commented:"Clearly there has been less competitive pressure on certain routes."
Sadly failing airlines, create problems for some but opportunities for others who remain, such as easyJet as it fuels the industry wide vacuum created by the reduced number of flights being offered. As airlines chiefly deal in US $, the stronger UK £ has helped.
Once off costs associated with any brexit issues have already been factored in, as airlines are not content to wait for the political process to pan out - if ever! Commercial realities demand forward planning as much as two/four years ahead A stronger pound has also helped lift the numbers at easyJet. Some 50 per cent of sales originate within the UK.
Mr Lundgren commented in a statement that easyJet would "continue to focus on cost" after generating approximately £28m of savings in the quarter.
He added: "Our customer proposition will continue to drive both passenger growth and loyalty.....we have great revenue growth, strong cost control, a robust operation and a strong balance sheet."
Johan Lundgren, easyJet Chief Executive in a statement said: "easyJet delivered a strong start to the financial year with a significant growth in revenue in part driven by an increase in passengers flown and strong growth in inflight and ancillary sales as we offer more and better quality options for our passengers.
We continue to focus on cost, generating approximately £28 million in lean savings in the quarter, and we completed our acquisition of part of Air Berlin's operations at Berlin Tegel.
"My aim is to help easyJet to go from strength to strength. Our customer proposition will continue to drive both passenger growth and loyalty.
"We have great revenue growth, strong cost control, a robust operation and a strong balance sheet.
"We expect to reach a series of milestones in 2018 including the roll out of our full summer schedule at our newly established base at Berlin Tegel, an increase in passenger numbers from 80 million to around 90 million, 'Worldwide by easyJet' will be expanded to around half of easyJet's network allowing customers to connect to long-haul services, our fleet will increase to over 300 aircraft by spring 2018 and we will take delivery of our first A321neo aircraft. There's a lot to look forward to."
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