EasyJet has moved swiftly to allay fears of shrinking toilets on its planes after it announced they would be pushed further down the fuselage to cut costs.
Almost half the budget airline’s fleet will be refitted in the next three years, adding six more seats on each of its 180-seat Airbus A320s.
EasyJet’s chief financial officer, Chris Kennedy, said the move was about “maintaining passenger comfort and reducing the cost”, and suggested that the size of the toilets would diminish.
Carolyn McCall, the chief executive, said: “We don’t believe that passengers will notice it.” She said that the modifications were being checked over by design teams at the manufacturer’s HQ in France and told journalists they should “go to Toulouse” – where Airbus is based – if they were concerned.
She said: “Airbus could have cottoned on to this a bit earlier on ... Everyone knows redesigns should optimise spaces. That’s what they’ve done now and added in one row.”
However, after checks, an easyJet spokesman said: “We can confirm that the new redesigned toilet has been reconfigured to ensure the ceiling height above the toilet remains the full height of the cabin and remains the same as previously.”
EasyJet has promised that passengers will not feel the squeeze, as the seat pitch will not change, and thinner seatbacks should increase legroom.
The airline swung to a record first-half profit as fuel costs fell, but shares dropped after it warned that currency movements and an industrial dispute in France would cut revenue per seat and dent full-year profits.
In the six months to the end of March, easyJet recorded a £7m pretax profit compared with a £53m loss a year earlier. Airlines traditionally suffer a loss in the first half of the year before recovering over the summer.
Revenue rose 3.8% to £1.77bn, helped by strong demand at the end of the ski season. Fuel costs fell from £537m to £516m.
The group gained £14m from the weaker euro as lower costs more than offset weakened revenue caused by the currency’s fall against sterling. However, easyJet said exchange rate movements were likely to reduce profit by about £40m in the second half of the year and £20m for the full year.
EasyJet shares fell 9.5% to £16.56, making the company the biggest loser in the FTSE 100 index.
McCall said: “The profit in the half reflects the delivery of our customer-focused revenue initiatives and a strong finish to the ski season, as well as the benefit we received from the lower fuel price and favourable foreign exchange movements.”
EasyJet said it was forced to cancel more than 600 flights in April, mainly owing to strikes by French air traffic controllers. The disruption will reduce annual profit by about £25m. As a result, revenue per seat in the third quarter would fall by about four percentage points, the company said.
The airline said it faced increased airport charges and a potential navigational charge of £12m, which it is disputing.
Mike van Dulken, the head of research at the spread betting firm Accendo Markets, said: “EasyJet shares are in freefall this morning as hitherto loyal investors react to a weak outlook for the third quarter [revenue per seat to fall] and the prospect of the second half suffering from a significant £40m foreign exchange hit, offsetting what is otherwise good news on the first half with pretax profits near the top end of consensus.”
McCall said summer bookings were in line with last year and the group would continue to perform well as fares go down because of its attractive destinations and low costs. At current exchange rates and with the price of fuel remaining stable, easyJet’s fuel bill is likely to fall by between £95m and £120m.
She said better economic conditions and reduced fuel costs would cause the supply of short-haul flights to increase by 6.7% in easyJet’s markets during the second half of its financial year.
Airlines have benefited from the falling cost of fuel, driven by the sharp reduction in the oil price between last summer and the start of 2015. British Airways’ parent company, IAG, reported a first-quarter profit for the first time last month.
McCall also reiterated easyJet’s opposition to Gatwick expansion, with the Airports Commission’s recommendation for a new runway expected soon. She said: “The funding requirements are extremely onerous before anything gets better, it will be very disruptive to passengers, and there is no demand – but everyone is screaming for more capacity at Heathrow. Everyone in British business is saying why don’t they just get on with Heathrow.”
She said easyJet would also be lobbying strongly for Britain to remain in the EU, after the Conservative government’s reported moves to bring forward a referendum. McCall added: “We were born from deregulation in the EU. It is definitely in Britain’s interest for us to remain in the EU.”
