EasyJet Share Price Fell 3.81% on Mixed FY 2023 Trading Results

The EasyJet plc (LON: EZJ) share price fell 3.81% after releasing a trading update for the financial year ended 30 September 2023. The airline’s pretax profits during Q4 2023, its strongest quarter, rose to between £650 and £670 million.

The low-cost airline carried 8% more passengers in Q4 than the previous year, while its revenues per seat (RPS) grew 9%, missing analysts' consensus estimates of 10%. The company’s cost per seat (CPS), excluding fuel, was flat compared to last year. 

The airline also expects its H2 headline profits before tax to be between £850 – £870 million, a new record. The company’s H2 passenger growth was up 7% from last year’s figure, and the revenue per seat (RPS) was up 15% yearly. 

EasyJet noted that booking momentum in the first quarter of its 2024 fiscal year was encouraging and expects to carry 15% more passengers than in Q1 2023. The company also revealed that ticket sales are ahead of last year, and the load factor is generally in line. 

The budget airline also set new aggressive medium-term targets, including its overarching goal of generating over £1 billion in profits before tax (PBT). The company intends to attain a Group PBT per seat of between £7 and £10 while simultaneously expecting to generate over £250 million of PBT via EasyJet Holidays. 

The budget airline has also reached a proposed agreement with Airbus for an additional 157 aircraft orders and a further 100 purchase rights. 

Johan Lundgren, CEO of easyJet, said: “We have delivered a record summer with strong demand for easyJet’s flights and holidays, with customers choosing us for our network, value and service. This performance has demonstrated that our strategy is achieving results, and so today, we have set out an ambitious roadmap to serve more customers and deliver attractive shareholder returns, underpinned by a continued focus on costs and operational excellence. Our new medium-term targets provide the building blocks to deliver a PBT greater than £1 billion. This will be driven by reducing winter losses, up-gauging our fleet and growing easyJet holidays. As part of our commitment to shareholder returns, the Board intends to reinstate dividends commencing with the FY23 results.”

EasyJet share price. 

The EeasyJet share price fell 3.81% to trade at 416.3p, from Wednesday’s closing price of 432.8p.