The low-cost carrier easyJet has posted encouraging financial results as the airline hopes to return to pre-pandemic levels of capacity in summer 2023.
In a trading update published on May 18, 2023, the carrier sounded buoyant, with revenues of £2.69 billion in the six months to March 31, 2023 – a 79% increase from the year before.
EasyJet said the results were driven by “network transformation, improved revenue capability and strong demand”.
The airline also saw a robust performance over Easter with around 1,600 flights per day and 98.8% of flights over the holiday period operating despite the French strikes.
The carrier said: “Whilst we remain mindful of the uncertain macroeconomic outlook across the globe, based on current high levels of demand and strong bookings, easyJet anticipates exceeding current market profit expectations of £260 million for FY23.”
Headline loss before tax for the first half of the year is expected to be up to around £425 million ($528 million), but with the airline heading into its busiest period, these costs should be clawed back.
This result comes despite challenges posed by elevated fuel prices, market wide inflation and costs associated with building resilience into the operation ahead of the summer period.
easyJet has ramped up capacity throughout the quarter, growing 40% from January to March 2023, and easyJet holidays are currently 80% sold for this summer.
Johan Lundgren, CEO of easyJet said: “Demand for easyJet’s flights and holidays has continued to grow in the half, resulting in more than a £120 million pound improvement in our performance as well as a billion-pound revenue improvement year on year. This is further enhanced by our transformed network of popular destinations and improved revenue capability,”
He added: “We see continued strong booking momentum into summer as customers prioritise spending on travel and choose airlines like easyJet offering the best value and destination mix, as well as easyJet holidays which is continuing its steep growth trajectory as the fastest growing holidays company in the UK.”
On May 18, 2023, the airline announced it will also be expanding its UK network by opening a new base at Birmingham Airport (BHX) in March 2024.
The airline will base three 186-seat A320 aircraft at the airport, creating around 100 direct jobs for pilots and crew in the UK.
