EasyJet Beats Expectations, Projects Full-year Profits
British low-cost carrier easyJet expects full-year profits that are above expected market forecasts.
British low-cost carrier easyJet expects full-year profits that are above expected market forecasts.
DALLAS — British low-cost carrier easyJet (U2) expects full-year profits that are above expected market forecasts. The demand for summer bookings is robust, a conclusion shared by other European airlines.
After strong demand over Easter and robust bookings for the summer season, the airline's Executive Board expects a £260m (€294m) pre-tax profit for the 2023 financial year, the airline reported in Luton.
In the first quarter of 2023, U2 was able to increase its passenger capacity by 40%. riding the industry's post-pandemic recovery wave, the LLC plans a 60% capacity increase by end of the year.
Additionally, 99.8% of Easter flights were successfully carried out despite the strike actions by French Air Traffic Controllers.
Easyjet also announced that it had reduced its net debt to £200m (about €226.7m) after £1.1bn (around €1.25bn) at the end of December. Nevertheless, the airline pointed out that strong inflation, the increased kerosene prices, and the strong US dollar exchange rate are a burden on the airline.
This increased profit forecast is also noticeable in the shares. At noon, shares of the British LCC were still up at around two percent. The securities of other low-cost airlines were also on the rise in light of the news.
Ryanair (FR) shares recently rose by more than two percent in Dublin, and the shares of Hungarian low-cost airline Wizz Air (W6)rose by more than three percent in London.
EasyJet CEO Johan Lundgren stated that the LCC "continued strong booking momentum into summer as customers prioritize spending on travel and choose airlines, like easyJet, offering the best value and destination mix.”
Featured image: easyJet Airbus A320neo. Photo: Hendrik Bittorf/Airways
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