Low-cost airline easyJet on course to return to profit in 2023 after suffering losses of more than £2bn during the pandemic. Tony McDonough reports
Low-cost airline easyJet is on course to make its first full-year profit in three years this year as it reports a surge in bookings.
During the pandemic easyJet suffered the first losses in its history with the deficit exceeding £2bn. However, its latest trading update signals a return to sometime like pre-pandemic normality.
In a trading update to the stock exchange easyjet, which operates 25 routes out of Liverpool John Lennon Airport, reported three record-breaking weekends for sales revenue this month as the traditional post-Christmas sales boom returned.
It has already sold 60% of the available holidays in easyJet Holidays division and the airline predicts a return to pre-COVID levels of capacity in the peak summer months between July and September.
In the three months to December 31, 2022, the first quarter of its fiscal year, the carrier reported a pre-tax loss of £133m. It traditionally makes a loss during this period and the figure was significantly better than the £213m loss in the same period in 2021.
Passenger numbers grew 47% year-on-year during the three-month period. Yield, which is revenue-per-seat, increased 26% and ancillary revenue, which includes food and other extras, was also up 36% to £20.12 per seat.
Johan Lundgren, chief executive of easyJet, said: “We have seen strong and sustained demand for travel over the first quarter, carrying almost 50% more customers compared with last year.
“Many returned to make bookings during the traditional turn of year sale where we filled five aircraft every minute in the peak hours, which culminated in three record-breaking weekends for sales revenue this month.
“In summary, we expect to see our winter loss reduce significantly over the first half compared to last year.
“This will set us firmly on the path to delivering a full year profit, where we anticipate beating the current market expectation enabling us to create value for customers, investors and the economies we serve.”