EasyJet trims winter losses in preparation for positive summer
Edward RobertsonEasyJet is predicting “positive” summer demand that will help drive its earnings growth for the year while winter losses have been trimmed.
Releasing its half-year results for the period ending 31 March 2024, alongside the announcement that chief executive Johan Lundgren is standing down, the airline said it had recorded a headline loss before tax of £350 million.
The £61 million year-on-year improvement has been driven by 12% capacity growth and flat unit costs, excluding fuel.
It was also boosted by its tour operator easyJet holidays division, which has seen profitable customer growth of 42% and has recorded £146 million net cash.
The airline added its upgrading programme of its aircraft continues with the delivery of nine new A320neo aircraft and five mid-life A320 leased aircraft as planned.
Costs are also predicted to fall in the future following an agreement to buy an established heavy base maintenance facility in Malta which will provide supply certainty as we as keeping costs down.
The airline added Birmingham and Alicante bases have successfully launched with sold load factors at both ahead of network average.
It also announced plans to launch a tenth UK base in Southend in summer 2025.
Lundgren said: “EasyJet’s targeted growth and focus on productivity has delivered a reduction in winter losses, boosted by our trusted brand and network that we continue to invest in.
"Our two newest bases, Alicante and Birmingham, are achieving passenger numbers well above the network average and we have announced a tenth UK base at London Southend from next March, continuing the growth of our leisure network in the UK where easyJet holidays plays an increasingly important role.
"We are now absolutely focused on another record summer which is expected to deliver strong FY24 earnings growth and are on track to achieve our medium term targets."
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