EasyJet sees a return to profitability

The low-cost airline easyJet has unveiled this Wednesday better than expected results for the first quarter, and now expects a profitable fiscal year.

For the three months ended December 31, 2022, the British specialist in cheap flights posted on January 25 a 47% increase in traffic compared to a year ago, with 17.47 million passengers. A 36% year-on-year increase in revenue per seat, a 10 point increase in Airbus load factor to 87%, and a 21% increase in ticket yield allowed easyJet to end the first quarter of fiscal 2023 with an overall loss before tax of £133 million, compared to a loss of £213 million in the first quarter of fiscal 2022, on a revenue that grew by 83% to £1.47 billion.

Ancillary revenues continue to grow with yields up 20% year-on-year and 85% year-on-year in the first quarter of fiscal 2019, prior to the Covid-19 pandemic. The easyJet Holidays tour operator business, which grew 161% in the period, generated a profit of £13 million (£1 million loss in Q1 FY2022).

With "strong booking momentum," second-quarter revenue per seat is expected to continue the year-over-year upward trend seen in the first quarter, the low-cost carrier's statement said. In January, easyJet and easyJet Holidays bookings generated record revenues, with the latter increasing its customer growth forecast (from 30% to around 50% year-on-year). There is also strong demand in the UK, where 11 new routes have just been announced to popular destinations.

"In summary, we expect to see our winter losses decrease significantly in the first half of the year compared to last year. This will put us firmly on track to achieve a full-year profit, where we expect to beat current market expectations, enabling us to create value for customers, investors and the economies we serve," said CEO Johan Lundgren.

In the first quarter, the airline's capacity was 20.2 million seats. EasyJet anticipates a climb to 38 million seats for the entire first half of the year, before reaching 56 million in the second half of its staggered fiscal year, which runs through September 2023. "With strong demand in the UK," easyJet Holidays is now at 60% of its capacity already booked for this summer, based on 30% year-on-year growth.

"We remain mindful of the uncertainty associated with the international macroeconomic environment, however, based on high levels of demand and the current booking trend, we anticipate exceeding current market forecasts in terms of profits for FY23," easyJet concludes.

Source : https://www.air-journal.fr/2023-01-25-easyjet-entrevoit-un-retour-aux-benefices-5245960.html