The airline informs investors that it tends to do well in adverse economic circumstances as it pays the price for post-pandemic difficulties that dulled its summer performance.
EasyJet expects to build on a solid summer, despite consumer budget restrictions, after COVID and post-pandemic disruptions brought it to an annual deficit.
The no-frills airline posted a $178 million deficit before taxes for the 12 months ending September 30, 2017.
Despite being a significant improvement over the previous year’s loss of £1.14 billion, this number reflected the company’s problems in regaining speed when pandemic limitations were lifted throughout Europe.
Last spring, EasyJet was among the airlines cited for a large number of last-minute cancellations.
While easyJet was not immune to personnel issues during the summer’s peak season, the company claimed its most successful quarter ever as profits climbed to £674 million between July and September.
The airline transported about 70 million passengers per year, compared to 20 million in 2020/21.
The revenue increased from £1.5 billion to $5.8 billion.
EasyJet pointed to ongoing momentum ahead, with a healthy Christmas anticipated – in line with the forecast volume for the holiday season.
For the six months beginning in April 2023, the period when the airline typically generates the majority of its earnings, easyJet reported that early bookings also were promising.
It was reported that Easter ticket sales were approximately 18% higher than in 2022.
It stated that it intends to fly 9% more seats during the spring and summer despite the cost of living crisis’s impact on household budgets.
Johan Lundgren, the company’s chief executive, told investors: “EasyJet does well in difficult circumstances. Legacy carriers will struggle in the context of high costs.
“EasyJet will benefit across its core airport network as consumers vote with their cash to protect their vacations while searching for value.
We are well-positioned to increase returns and margins while maintaining a strict cost-consciousness over the course of the following year.
Shares, which were down 30% year-to-date, plummeted 3% at the opening bell.
This likely reflects the company’s decision to forego a dividend recommendation.
EasyJet stated that it would reevaluate the possibilities for shareholder rewards when the group’s financial performance permits.
