EasyJet Reduces Winter Losses On Strong Easter Demand

EasyJet (LON: EZJ) released a trading update for the six months that ended March 31 on Wednesday, revealing a year-on-year increase in revenue and a reduction in its first-half “seasonal” losses.

The low-cost airline said its headline loss before tax is expected to be £50 million lower, coming in between £340 million and £360 million. The improvement was driven by targeted capacity growth where demand was strongest and productivity and utilisation benefits.

However, EasyJet noted there were some headwinds during the quarter, such as fuel cost (per seat inflation of +6%) and the conflict in the Middle East, which resulted in a direct impact of around £40 million in the first half.

Even so, revenue growth was solid, with passengers up 8% year-on-year and group revenue at £3.27 billion, up 22% from the £2.69 billion reported during the same period last year.  

Easter demand was particularly strong for the company, benefitting March due to its early timing. In addition, its operational performance was good, with peak daily flights broadly in line with summer levels.

Looking ahead, bookings for summer 2024 continue to build well, with an increase in volume and pricing compared to the same period last year. This, according to the company, is underpinned by strong demand for easyJet’s primary airport network. 

“The importance that consumers place on travel coupled with easyJet’s trusted brand has driven good demand for our flights and holidays,” said EasyJet CEO Johan Lundgren. “We are well set up operationally for this summer season where we expect easyJet to be one of the fastest growing major airlines in Europe and take more customers on easyJet holidays than ever before.”