EasyJet said it was expecting to grow strongly over the summer, despite pressure on consumer budgets, after COVID and post-pandemic disruption pushed it to an annual loss. .
The low-cost airline reported a pre-tax loss of £178 million in the 12 months to September 30.
While that is a significant drop from the previous financial year’s £1.14 billion loss, it reflects the company’s difficulties in getting up to speed again as pandemic restrictions are eased. liquid throughout Europe.
EasyJet are among the airlines called on mass cancellation – many of them last minute – last spring.
While easyJet is not immune to staffing difficulties during the peak summer season, it reported its most profitable quarter ever as earnings soared to £674 million between July and April. September.
The airline carried nearly 70 million passengers in 12 months compared with 20 million in 2020/21.
Revenue rose to £5.8 billion from £1.5 billion.
EasyJet indicates continued momentum ahead with a strong Christmas holiday expected – in line with the numbers it expects to hit during the holiday season.
In the six months from April 2023, a period in which the airline tends to make most of its profits, easyJet said early bookings also look positive.
It reports that Easter ticket production is about 18% higher than in 2022.
It said it was planning to add 9% more seats for the spring and summer periods despite pressure on household budgets from cost of living crisis.
The company’s chief executive officer, Johan Lundgren, told investors: “easyJet does well in difficult times. Legacy airlines will struggle in this high-cost environment.
“Consumers will protect their holiday but seek value and on its main airport network, easyJet will be the beneficiary as customers vote with their wallets.
Johan Lundren, boss of easyJet, says the airline tends to perform better in tough economic times
“For the coming year, we’re targeting customer growth and are well positioned to drive margins and margins while maintaining a rigorous focus on costs.”
Shares, down 30% year-to-date, are down 3% at the open.
That may reflect the company’s decision not to offer a dividend.
EasyJet said it will reassess shareholder profit potential as the group’s financial performance allows.
