#image_title
easyJet trimmed its losses in the first half of its fiscal year and reported a positive outlook for the remainder of the year, with strong summer bookings. Revenues for the six months to March 31st rose to £3.27 billion, up from £2.69 billion year over year. Operating losses fell to £350 million from £411 million in the prior year.
The airline took a £40 million hit from the Middle East conflict, which was overcome by strong Easter demand. EasyJet said demand for flights had rebounded after a six-week “softening” in searches and bookings from the start of the Israel-Gaza war in October. Summer bookings are quite positive, with 70% of the company’s package holidays already sold. The company projects its holiday business to grow by 35% y-o-y.
CEO Johan Lundgren indicated that the positive performance is due to strong customer demand and the success of the company’s focus on productivity. Traffic rose to 16.8 million passengers in the second quarter, up from 15.6 million in the last fiscal year. The load factor for the second quarter ending in March was 87%.
“The importance that consumers place on travel coupled with easyJet’s trusted brand has driven good demand for our flights and holidays. Our growth and focus on productivity have reduced winter losses by more than £50 million,” said Lundgren. “We are well set up operationally for this summer season where we expect easyJet to be one of the fastest growing major airlines in Europe and take more customers on easyJet holidays than ever before.”
The Bottom Line
easyJet will be one of the fastest-growing airlines in Europe this year. New bases in Alicante and Birmingham will contribute to 94 new routes. Capacity will grow 8% y-o-y, with the expected delivery of 16 additional Airbus aircraft in 2024.
Reducing winter season losses is key to easyJet’s strategy, combined with strong peak-season performance. So far, the plan is moving in the right direction, but there is still a way to go before the winter season can break even. New aircraft and a continued focus on productivity will aid in that process.
