EasyJet's (LON: EZJ) share price surged over 9% at the open on Wednesday after the company reported a strong third quarter with revenue rising 11% to £2.6 billion.
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The profit improvement of £33 million year-on-year was driven by an 8% increase in passengers and a 1% rise in revenue per seat (RPS). EasyJet holidays also performed well, with a 49% increase in profit before tax (PBT) to £73 million. Overall, group profit before tax came in at £236 million, up 16% year-on-year.
Passenger growth was particularly positive as it came despite Easter falling outside of the quarter this year. This demonstrates continued strong demand for travel, which easyJet is well-positioned to meet with its extensive network of destinations.
The company said it is on track for another record-breaking summer, a significant step towards its medium-term goals.
Looking at the financials, the revenue increase was primarily due to passenger growth, ancillary revenue growth per seat, and the continued success of easyJet holidays.
There was a slight increase in airline cost per seat (CASK) ex-fuel, driven by a 1% rise in average sector length, which was offset by a reduction in disruption costs. The company expects H2'24 CASK ex-fuel to increase by low single digits, with Q4 potentially seeing a slightly higher rise.
EasyJet's positive outlook is bolstered by strong booking figures for Q4, with 69% of seats already sold, representing a 1% year-on-year rise. This translates to 1.5 million more seats sold for peak summer compared to last year, with total yield remaining flat.
Looking ahead to Q1'25, there is a 5% increase in capacity on sale, with 20% of the program already sold, reflecting a 2% year-on-year rise.
Commenting on the results, Johan Lundgren, CEO of easyJet, said: “Our strong performance in the quarter has been driven by more customers choosing easyJet for our unrivalled network of destinations and value for money.
“This result was achieved despite Easter falling into March this year, demonstrating the continued importance of travel and this means we remain on track to deliver another record-breaking summer, taking us a step closer to our medium term targets.”
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