The conflict in Israel and Gaza is having a near-term impact on easyJet’s current first quarter of FY24. With flights to Israel and Jordan suspended and demand to Egypt slightly lower, easyJet doesn’t expect its current Q1 loss to improve despite higher revenues year on year. With strong forward bookings for the 2024 summer and industry-wide supply chain issue, the carrier expects all other quarters to produce a solid profit, the airline said on Tuesday in the FY23 earnings presentation.
On October 12, easyJet said in a trading update that Q1 capacity would grow 15 percent year on year. October was still strong, but as the conflict escalated after October 7 and flights were suspended, the effect has been felt. This is despite the fact that Israel, Jordan, and Egypt account for only four percent of the planned capacity for HY1.
If the conflict is restricted to Q1 only, easyJet expects to grow capacity in HY1 (September-March) by 11 percent to 42 million seats. In HY2, eight percent more seats, or 59 million will be added, resulting in an overall capacity growth of nine percent and positive revenues per share for all remaining quarters compared to FY23. easyJet Holidays should see 35 growth in FY24.
Unlock the Full AirInsight Analysis & KPI Models
Get instant access to proprietary fleet valuation models, production & delivery forecasts, engine cost analytics, and the complete subscriber archive.
Not ready for a paid pass?
Create a free account
to access executive summaries and public market updates.
