easyJet’s CEO was “pleased” with the LCC’s results due to tough trading conditions. Andy Myers looks at the airline’s profitability by country.
With easyJet having just announced its rather disappointing half-year results to the end of March 2019 our latest graphic looks at average fare by country for the same period and colour codes the bars by our estimated level of route profitability.
Despite the fact that the LCC’s revenues and passenger carryings were both up on the previous year, total losses peaked at £227m, representing a loss per seat in the region of £6. Our chart shows that the worst country markets were the Scandinavian countries, followed by Estonia, Malta, Jordan and Cyprus. The best performing markets were Serbia, Morocco, Egypt and Israel. Overall the carrier’s average revenue for this period was around £51 per seat.While W18/19 period has appeared tougher than usual, with many carriers reporting a more challenging environment than a year ago, easyJet does appear to have been affected particularly badly. Using data in Network Grandstand, Europe’s extensive LCC performance tracking system, we have also compared routes by level of profitability for easyJet and Ryanair. Although we think the latter has around 50% of its network firmly in the profitable zone (even in the winter period), the figure for easyJet is only around 30%. And while Ryanair only has 20% of its network making losses during this period, the figure for easyJet is almost 50%.
Tel Aviv towers over all
Looking at the top four average fare markets in turn, during W18/19 easyJet was only operating to Tel Aviv in Israel, so in reality it represents the whole country market, with over one-way 280,000 seats flown. Similarly, Hurghada was the LCC’s only Egyptian destination during the previous winter, and will remain so despite the airline starting two more services to the North African country in W19/20 (see below). Dalaman was the leading destination for easyJet of the four it serves in Turkey, with just under 50% of its capacity flown to the resort in the south-west of the country. The carrier’s capacity to Morocco during W18/19 was roughly equivalent to that of Turkey in size, with Marrakech the #1 arrival point, offering nearly 270,000 seats during the period. Referring to the new route list below, easyJet will launch two more services to Morocco this coming winter, both to Agadir.
Turning our attention to the top of the graph, Norway is the smallest of the eight country markets focused on here, offering less than 22,000 one-way seats, and with Oslo Gardermoen being easyJet’s sole destination during W18/19. Unsurprisingly, Helsinki was the LCC’s biggest arrival airport in Finland, commanding more than two-thirds of its seats in that particular market. Germany is by far the largest of the country markets under scrutiny here with over four million seats on sale last winter, and was easyJet’s fourth largest country market at that time (other country markets like Spain are bigger in the summer season). Sweden was dominated by capacity at the capital’s primary airport of Arlanda, as it commanded over 75% of all seats. Capacity in both Germany and Sweden will also receive a boost this winter when the carrier links its two capitals.
easyJet routes still to launch in 2019 across these top and bottom performing country markets (shown in bold) include:
24 June ─ Berlin Schönefeld to Ancona, twice-weekly A319/A320 service;
27 October ─ Berlin Schönefeld to Lanzarote, twice-weekly A320 service;
27 October ─ Berlin Schönefeld to Stockholm Arlanda, six times weekly A319 service;
27 October ─ Milan Malpensa to Hurghada, twice-weekly A320 service;
30 October ─ Berlin Tegel to Agadir, twice-weekly A320 service;
2 November ─ Amsterdam to Agadir, weekly A320 service;
2 November ─ Berlin Schönefeld to Aqaba, weekly A320 service;
2 November ─ Berlin Tegel to Hurgada, weekly A320 service;
5 November ─ London Stansted to Tel Aviv, twice-weekly A320 service;
17 November ─ London Gatwick to Rovaniemi, twice-weekly A319 service.
Network Grandstand is Europe’s oldest and most accurate LCC performance tracking system. With fare data for over 40 European full service and LCCs, and a new visual platform about to launch, we are also offering the product free of charge for the first time to qualifying clients. To find out how your airport can benefit from this amazing offer, please come and talk to myself or Marc Watkins at CONNECT in Cagliari or contact us via LinkedIn.