EasyJet announced that it will pay its first ever dividend in 2012 in respect of the year ending 30 September 2011.
"EasyJet is highly cash generative and well financed. Consequently, the board of directors now feels that the time is right to set in place a formula to trigger a dividend payment in years when the company is profitable whilst at the same time ensuring that it retains a conservative capital structure," it comments on the back of a £121.3 million ($194.4 million) net profit for its 2009/10 fiscal year ended 30 September.
The low-cost carrier generated significant positive cash flows in the 2009/10 fiscal year with cash and money market deposits totalling £1.17 billion compared with £1.07 billion at 30 September 2009.
Net cash flow from operations improved by £228.9 million to £363.4 million over the 12-month period.
Net capital expenditure totalled £482.6 million (£430.3 million in 2008/09), principally driven by the acquisition of a 27 A320 family aircraft.
Net loan and lease finance drawdown was £177.3 million, comprising mortgages on 13 aircraft, finance leases on two aircraft and the sale and leaseback of six aircraft, net of repayments on mortgages and finance leases.
Net increase in cash and cash equivalents increased by £123.3 million (compared with £156.4 million in 2008/09 period) to £911.9 million at 30 September 2010.
The carrier says it will continue with a conservative policy including a liquidity target of £4 million cash per aircraft, a leverage cap of £10 million adjusted gross debt per aircraft and a 50% limit on net gearing.
Source: Commercial Aviation Online
