EasyJet (EZJ) chief executive Johan Lundgren hailed a “£1bn bounce back” on the publication of the airline’s full-year results last month, referring to a £1.1bn swing in ‘Ebitdar’ – the profitability metric favoured by the company, which not only strips out interest, tax, depreciation and amortisation, but also plane leasing costs – to £569mn.
Tip style
Value
Risk rating
High
Timescale
Long Term
Bull points
- Well-placed at key hubs
- More efficient fleet
- High-margin holiday arm
- Strong balance sheet
Bear points
- Recovery lags peers
- Fuel costs remain elevated
- Capex set to soar
This certainly isn't a metric that investors should build a case around. At a statutory level, easyJet posted a pre-tax loss of £178mn in the year to 30 September.