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EasyJet narrows losses as holiday bookings rise

EasyJet holidaymakers
EasyJet is seeing robust demand from holidaymakers

EasyJet cut its winter losses by more than £50 million as a result of an 8% year-on-year second quarter growth in passenger revenue and higher prices.

Headline losses before tax for the half year are expected to fall to between £340m-£360m despite headwinds from fuel cost and the conflict in the Middle East which resulted in a direct impact of c.£40 million in the first half.

It restarted a limited service to Israel last month but on Tuesday said flights would be suspended until October.

The company said easyJet holidays produced £31m of profit before tax (+206% compared to H1’23) and 42% customer growth year-on-year.

Capacity was increased by approximately 8% to accommodate the growing demand at the budget airline which recently reclaimed its spot as a FTSE 100 constituent.

Easter demand was particularly strong and bookings for summer 2024 continue to build well, with an increase in volume and pricing compared to the same period last year. It expects third-quarter revenues to be “slightly” up year on year.

For the fourth quarter, revenue per seat is anticipated to remain significantly ahead year-on-year, with about 30% of capacity already sold.

Chief executive Johan Lundgren said: “We have further enhanced our network with the launch of new bases in Alicante and Birmingham providing greater choice for consumers across Europe.

“We are well set up operationally for this summer season where we expect easyJet to be one of the fastest growing major airlines in Europe and take more customers on easyJet holidays than ever before.”

He noted that the onset of the conflict in the Middle East “resulted in a pause in flights to Israel and Jordan and a temporary slowdown in flight bookings for the wider industry”.

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