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Breakingviews: Flying high – but Easyjet growth will slow

Tuesday, Nov 19, 2013 - 04:21

Nov. 19 - The low-cost airline has posted a 50% jump in profit and is offering a chunky special dividend to its shareholders. But Breakingviews says things cannot continue at this pace.

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For the late breaking news diseases every hard won rewards with a 50% jump in profit and chunky special dividend shall order. When it's done a great become harder to replicate Robert cold as what is breaking news. I think that's a joins me now I'm Gary it's it's a post a story this one of course is it of course the question has to be how yeah how sustainable is this. I don't I don't run as doing some things now as well well it's it's gonna get. Much much more difficult I think very -- jets and that is not to try not -- -- it's all right let's let's. To the old hat but they've done very well here and installed contrast Iran of course which is not one of the most. Difficult periods all of all of its existence rye man has gone in and and I'm -- and -- just as has come in and and done a much better job of a finger at a couple of things slow for -- many things by a couple things on life tone to suggest is all things gonna get. Or is it going to be as easy to replicate this kind of performance that the first thing is you -- make you run and knows that it's. -- I had a weak spot and is going to going to come back but I'm. But the airline industry oval hole overrule. Has been narrowing capacity has been putting fewer seats. In -- -- on that in a funny way has benefited. Easy -- because it hasn't had so much competition the it's been able to fund its its prices and looked well. So it's. May have lost on volume and a bit. But -- the prices of and write and -- and the other thing that's everyone's sort of go all locked in on here is that easy objective sort of -- that customer service. And this has given them some mole. More loyalty well there is an added cost which I think may -- -- shouldn't be underestimated. And you know having given customers effective Texas service part so one. More no B if you like and inflation guy in. Plight to the cost prices of -- easy jet. Could could could go up if I'd give too much customs I was but. There's other things on moiso is really important to the the business mobile all of these low cost carrier is. Is the fact that they doesn't have Alipay to seek things because of it doesn't have allocated -- yet. It does match but he didn't used to and I was always working on the assumption that that was the key part of the business model. Because it made at -- and run through the you know. Get to the guy who could -- and then they can utilize that place over as so I got its -- I get to all things like that help. And you know I think that -- things lying about a -- come come under the umbrella of customer service. I am so I don't think doing things I Vatican Kofi Annan in -- well IT IE. Wouldn't mind to really but I think there's a risk that Tate could actually backfire. And that could actually lead to -- hot cost. And a more difficult to victory Diana. -- So so what what are you saying in terms of what it needs to do next. How it can keep this momentum going. Well I think the that the key things are to hunt put it if it. Let's put this in context would not sign that it's gonna fiset is gonna pull off a cliff but I have doubled in the last year rolls. And the kind of momentum. He'd -- it that kind of pace of growth is unlikely to be sustained. -- -- -- don't have live across all of our. So what I think I'm pretty optimistic overruled I'm saying. Always sang that it will get -- them to sustain and grow Lou but not buck off of him being impossible. I think we all bottoms you know it is rights to trying to attract customers and the abysmal customer service has clearly what they want is clearly worked. It's gonna be managed. But I think that said there will be following wind from the economy as well well I think I think they'll be all right from a thanks map Robert -- from Georgia and it's heading into what's right US frighten me show. Every day talk buddies consenting -- GMT I'm axle problems this crisis.

Breakingviews: Flying high – but Easyjet growth will slow

Tuesday, Nov 19, 2013 - 04:21

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