Fuel costs double loss at Easyjet

You’re not reading what I am saying.

The fuel costs are the main reason and the only reason for the loss of profits. But the dual fleet situation is not going to help EZY trim down and get leaner to combat the effect.

It’s been debated many times before – EZY’s fleets are large enough that the price in operating two fleets is more than compensated for by the low purchase costs. I’m not going to bother explaining why – there are plenty of threads on it already.
Easyjet did not make a loss because they operate two fleets – the loss came because of soaring fuel prices.

Sure, they like all airlines will want to become trim, but again the dual fleet factor is negligible! :rolleyes:

Guys, you’re all making stuff out of nothing. Firstly, the loss was less than expected, and secondly Easy are still projecting double-digit millions of profit for the entire year. The A319/737 debate is almost irrelevent – the deal was so good (acquisition costs, ongoing costs, training costs, etc) that it is pretty much a non-factor.

All low fare operators (Tinkers Air included) will raise their fares to compensate for the fuel price rise – this may not be exhibited in high-visibility headline-grabbing low-availability long-in-advance prices, but overall the average fares will rise to offset the costs, to parallel the way the full service airlines have increased fuel surcharges that are added to published and easily visible fixed fares.

Andy

Andy

Sandy, I think I’m missing something here.

“The fuel costs are the main reason and the only reason for the loss of profits.”

Are fuel costs the main reason OR the only reason? Can’t be both. So which is it?

Regarding Ryanair, doesn’t their profitability stem from the fact that they serve a number of destinations who pay them to fly there? Hence their ability to offer very low prices to their customer base. Surely, Easy have separate teams to maintain ether Airbus or Boeing aircraft much as they must have aircrew decicated to Airbus or Boeing. Might it not be that the diversity offered by a fleet divided between two major manufacturers creates a considerable degree of competition between these manufacturers regarding the pricing of service and parts? And further competition when it comes to fleet replacement?

Regards,

kev35

I don’t think the dual fleet has anything material to do with it. I read somewhere recently, that once an airline gets 30+ aircraft of a particular type, then commonality is mcuh less of an issue. With very good split of bus and boeing models in the fleet, I don’t see this as a problem.

The problem is fuel costs, and even then if fuel costs had been closer to $40 a barrell, then I bet we would have still seen losses in winter…it is winter after all and part of the norm.

You’re not reading what I am saying.

The fuel costs are the main reason and the only reason for the loss of profits. But the dual fleet situation is not going to help EZY trim down and get leaner to combat the effect.

You’ll find Ryanair will be much more able to tighten their ship and lean out the operation due to having a single fleet type.
Southwest Airlines are a prime example. They have 400 plus aircraft, all 737s and when everyone was making a loss, they broke even or made profit. Part of that is down to the single fleet, single pilot pool, single parts resource and single maintenance requirements.

I have to say, EZY have gone quite pricey from Liverpool to what they used to be. I was able to get a daytrips to GVA/CDG/AMS and NCE for £40 in 2003 no problem, but by now, i’m strugling to get any sort of cheap deal at all!

I don’t think the dual fleet has anything material to do with it. I read somewhere recently, that once an airline gets 30+ aircraft of a particular type, then commonality is mcuh less of an issue. With very good split of bus and boeing models in the fleet, I don’t see this as a problem.

The problem is fuel costs, and even then if fuel costs had been closer to $40 a barrell, then I bet we would have still seen losses in winter…it is winter after all and part of the norm.

How? Do Airbus and Boening aircraft use different fuels with one being less expensive than the other? I don’t see any correlation between fuel prices and fleet commonality unless two different fuels are required or one manufacturer’s products are much more fuel efficient than the others?

Are there figure which would support that argument? Either in favour of Airbus or Boeing? (In Easyjet’s case…)

Regards,

kev35

Its quite simple.

So far they have been able to keep the costs of a dual fleet in check, mainly ue to good profits. Now, their fuel bill is eating away that profit.

Running a fleet of 73Gs and A319s is more expensive that running a fleet of just the one type. I’m sure you know why. Parts, pilots, ground equipment, maintenance etc.

All I’m saying is that Ezy may now end up paying more for their dual fleet than they planned.

Prices are more likely to go up actually as more people book.

They certainly do. The Spanish routes are the ones I’m interested in! Very expensive for October half term even this far in advance! Crazy, hopefully the prices will reduce soon.

Flex 35

Thats how they make their money!!!

Good ole’ Declan Curry did say that most airlines lose cash in the winter and make it up in the summer, Easyjet are just making a lot less this winter gone than the one before and are making up for it with yet more routes,

Wozza

LCC’s do seem to be quite expensive on the Spanish routes, the shorter routes they seem to be as cheap as ever, if you book in advance.

They certainly do. The Spanish routes are the ones I’m interested in! Very expensive for October half term even this far in advance! Crazy, hopefully the prices will reduce soon.

Flex 35

I think this is where the cost of their 2 fleets types are going to hurt them.

How? Do Airbus and Boening aircraft use different fuels with one being less expensive than the other? I don’t see any correlation between fuel prices and fleet commonality unless two different fuels are required or one manufacturer’s products are much more fuel efficient than the others?

Are there figure which would support that argument? Either in favour of Airbus or Boeing? (In Easyjet’s case…)

Regards,

kev35

So what if they made a loss. Every other LCC will, and they will see it through along with Ryanair and a couple of others in the long term. I read somewhere last year reporting that Jet2 were predicting to make a loss this winter – EZY and LS s key routes are Spanish which are more popular in Summer. Besides, EZY are one of the best known airlines across Europe and there will always be people willing to travel with them ahead of expensive national carriers.

Even though EZY don’t have a fuel surcharge, the increase in fares is surely covering for that so it provides a sneaky way of gaining more money.

I’m finding cheap short haul stuff for July and August, wouldn’t say that is incredibly far in advance. (When I say short haul, dont mean the likes of Spain!)

Long in advance, long long in advance so far as that it is virtually impossible to forsee some items that arise on your diary that can not be midssed.

Is it just me or are LCC’s not that cheap anymore? Sign of the times I suppose with all these fuel costs etc.

Flex 35

LCC’s do seem to be quite expensive on the Spanish routes, the shorter routes they seem to be as cheap as ever, if you book in advance.

No dout the prices will go up this could drag them down with so mutch competion up with flybe and stuff

Is it just me or are LCC’s not that cheap anymore? Sign of the times I suppose with all these fuel costs etc.

Flex 35

I think this is where the cost of their 2 fleets types are going to hurt them.