23 January 2010

Easyjet Shows Boost in Yields But .........From Where?

Easyjet has made a lot of play lately that it is making more money from its GDS revenue. However the recent numbers dont show this.

Indeed an examination of their numbers show that total revenue actually only just rose. Given the troublesome year - this is still quite an achievement.

Total revenue per seat (£) 47.50 45.57 4.2%
Passenger revenue per seat (£) 37.60 36.90 1.9%
Ancillary revenue per seat (£)
Including checked bag charge 9.90 8.68 14.0%
Total revenue per passenger (£) 55.38 54.66 1.3%

So the real driver comes again from the ancillary revenue bucket. With baggage fees definitely helping along.

Ryanair's numbers (in dollar value) are not quite as good but still very healthy.

So there is still a lot of room for growth.

One observation is that clearly the model of being able to get ancillary revenue at the point of sale is going to be a driver for all airlines


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