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EasyJet breaks with the past

The low-cost airline’s focus on squeezing more profit from non-flight revenues looks smart
December 22, 2022

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.

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