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UK low-cost carrier easyJet is working on a follow-on order for more Airbus A320neo family aircraft, which should replace older-generation Airbus aircraft. The airline disclosed the news in a Q3 trading update on July 20. easyJet is planning new aircraft order beyond 2028.
easyJet placed an order for 56 A320neo family at last year’s Farnborough Airshow. This brings the backlog to 163 aircraft for delivery through 2028. “We are now running a process to secure additional firm order positions for our longer-term fleet plan. This would allow easyJet to replace older aircraft with additional options to deliver future growth,” the airline says.
In May, easyJet said in its HY1 report that it had 96 A319 and 168 A320ceo aircraft in the fleet. It was looking to induct more leased ceo’s to make up for delivery shortfalls.
Strong Q3 profit
The airline reported a £203 million pre-tax headline profit for Q3, which runs from April to June. This compares to £-114 million in the same period last year. Group headline EBITDAR was £372 million versus £103 million.
easyJet recorded a strong quarter, with revenues of £2.360 billion versus £1.755 billion last year. Passenger revenues were up 30 percent to £1.501 billion, and ancillary revenues by 28 percent to £622 million. The airline carried 23.5 million passengers at a 90 percent load factor.
easyJet Holidays contributed £237 million to the revenues, up 104 percent year on year. The business unit is on track to reach a £100 million headline profit before tax.
“Based on current booking trends, easyJet expects Q4 to deliver another record PBT performance with RPS up by around 10 percent year on year and cost per seat excluding fuel for H2’23 expected to remain broadly flat year on year.”
The airline said before that it expects to return to profitability this year. It says this guidance is subject to the operational environment, notably “unprecedented ATC disruption as well as increased ATC strike days up 40 percent year to date vs 2019. Management have taken action to mitigate the impact of this on our customers.”
For Q1 of FY24, which starts on October 1, easyJet expects to grow capacity by 15 percent year on year. Yields and load factors should be ahead year on year. Headline costs excluding fuel should be broadly flat.
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