easyJet expects to reduce its HY1 FY24 headline loss despite a £40 million headwind from lower demand for slights to the Middle East. Since November, bookings have recovered, which makes the carrier optimistic that the slump in October has only been temporary.
The airline reported a £-126 million headline loss for Q1 (October-December) in a trading update on Wednesday. This compares to £-133 million in Q1 of FY23. Immediately after the outbreak of hostilities between Hamas and Israel on October 7, easyJet suspended flights to Israel and Jordan until further notice. Demand and bookings plunged, also to holiday destinations in Egypt, but have recovered since November. Pending the outcome of the conflict, easyJet expects the impact, which it anticipated in November,
to be limited to £40 million.
Overall, demand has picked up strong, with passenger growth up 14 percent year on year to 19.8 million. Total revenues in Q1 were £1.8 billion, up from £1.474 in the same quarter last year. Passenger revenues grew to £1.133 billion from £975 million, ancillary revenues to £486 million from £406 million. Ticket yields were up 2 percent year on year. easyJet Holidays generated £181 million in Q1 revenues, up from £93 million, and delivered a £30 million profit.
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