Numbers came in ahead of expectations. Over the medium term the anticipated capacity growth deceleration should drive further profit growth and strong cash generation. We retain our Buy recommendation.
JONATHAN JACKSON | KILLIK
Passenger numbers were down two per cent to 16.7m, offset by a 17 per cent increase in average fares, driven by capacity cuts and eight per cent growth in ancillary revenue. Unit costs were down one per cent excluding fuel, in spite of a two per cent increase in basic pay.
PETER HYDE | LIBERUM
Average fares were better than expected. They were helped by the industry’s desire to fully re-coup recent fuel price increases, Ryanair’s cutting of capacity, the introduction of... charges, and possibly by a desire to partially close the fare gap with easyJet and BA.