EasyJet Shares Rose on Record H2 Profits, Positive 2024 Outlook

The easyJet plc (LON: EZJ) share price rose 4.38% at 8:43 GMT after releasing its final results for the twelve months ended 30 September 2023. The company reported a remarkable financial performance in the second half of 2023 (H2'23), signalling a positive outlook for the fiscal year 2024 (FY24) despite facing a challenging external operating environment.

The low-cost airline generated record profit before tax in H2 '23 despite the challenging conditions, demonstrating the resilience of its operations. The airline’s full-year headline profit before tax reached £455 million, marking an impressive £633 million year-on-year improvement.

The budget airline registered robust growth in its holiday subsidiary, easyJet Holidays, with profits surging by 221%, resulting in a profit before tax of £122 million. The outlook for FY24 appears promising, as evidenced by several critical indicators.

The company’s October Revenue per Seat (RPS) increased by 12%, setting a positive tone for the start of FY24. Despite being impacted by the Middle East conflict, the first quarter (Q1) is expected to see YoY growth in RPS.

The airline’s Q2 to Q4 RPS are all forecasted to be ahead YoY, indicating sustained growth throughout the fiscal year. H1 Cost per Seat (CPS) excluding fuel is expected to remain broadly flat compared to the 2023 fiscal year. 

EasyJet Holidays is anticipated to achieve over 35% growth in FY24, with the Average Selling Price (ASP) showing a high single-digit increase.

The company is on track to deliver disciplined growth in FY24, with seat capacity expansion plans as follows. In H1'24, the airline expects to have 42 million seats, reflecting an impressive 11% YoY increase. EasyJet maintains a robust financial position, with £41 million in net cash and a substantial liquidity buffer of £4.7 billion. 

Johan Lundgren, easyJet's Chief Executive Officer, said: “Our record summer performance demonstrates the success of our strategy and that demand for easyJet remains strong as customers choose us for our network and value. We see a positive outlook for this year with airline and holiday bookings both ahead year on year, and recent consumer research highlights that around three-quarters of Britons plan to spend more on their holidays versus last year, with travel continuing to be the top priority for household discretionary spending.”

EasyJet share price. 

The EasyJet share price rose 4.38% to trade at 424.2p from Monday’s closing price of 406.4p.