Tech

EasyJet raises profit forecast due to boom in demand


EasyJet expects to be profitable after 3 consecutive years of losses

EasyJet hopes to return to profitability after three consecutive years of losses.

British airline EasyJet raised its annual profit guidance on Wednesday after record demand and a drop in quarterly losses, as customers prioritized the holidays and ignored the cost of living crisis.

The airline believes it will exceed expectations for an annual pre-tax profit of £126 million ($156 million) for the financial year to the end of September, despite the global economic gloom. from high inflation.

“While we remain mindful of an uncertain macroeconomic outlook globally, based on current high levels of demand and strong bookings, EasyJet anticipates to beat current market profit expectations at” for 2022-2023, the airline said in a statement.

EasyJet has been expected to bounce back in the dark as the industry recovers in the aftermath of COVID, after three consecutive annual losses.

The airline announced a reduced loss for the 2021-2022 period in November, but this is much less than during the worst of the COVID pandemic.

strong demand

EasyJet added on Wednesday that it cut its pre-tax loss to £133m in the first quarter, or three months to December.

This figure has dropped sharply from the previous time of £ 213 million.

Traffic rebounded 47% to 17.5 million passengers during the reporting period.

EasyJet has seen a massive recovery in traditional Tet bookings, with three record-breaking weekends so far in January.

That means it hopes to significantly limit its losses in the first half of this year.

“We see strong and sustainable travel demand around the world. first quarter“, said chief executive Johan Lundgren.

“Many people came back to book during the traditional year-end sale, where we filled five planes every minute during rush hour, which culminated in three record-breaking weekends for Sales revenue this month.”

Lundgren notes that customers are looking to “prioritize spending on vacations next year”.

“This will keep us firmly on the path to full-year profitability,” he added.

industry revival

Investors welcomed the company’s bright prospects, sending EasyJet shares up nearly 10% on the back of London’s rally stock market.

The global aviation sector is flying high after a tumultuous period following the deadly coronavirus crisis, which erupted in early 2020 to ground flights, causing massive financial losses and job cuts .

Britain removed the remaining COVID travel restrictions in March 2022, but airlines and airports have since struggled to cope with increased demand.

“Since late last year, stocks have skyrocketed on anticipation that the airline as well as the broader aviation sector will finally be able to break free of the shackles of COVID, the soaring cost of living and the aftermath of the pandemic. Russia’s invasion of Ukraine,” said CMC Markets analyst Michael Hewson.

“Last year, the industry also had to deal with the challenges of limited capacity in big airport as well as staff shortages, leading to huge delays and cancellations.”

© 2023 AFP

quote: EasyJet raises profit forecast as demand booms (2023, Jan 25) accessed Jan 25, 2023 from https://techxplore.com/news/2023-01-easyjet-hikes-profit-demand -boom.html

This document is the subject for the collection of authors. Other than any fair dealing for private learning or research purposes, no part may be reproduced without written permission. The content provided is for informational purposes only.

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button