The airline company low cost easyJet shows for the 3rd quarter “a fine performance”, with in particular a record pre-tax profit of 203 million pounds.
In the quarter ending June 30, 2023, the British low-cost flight specialist reports a pre-tax profit of 203 million pounds, a £317 million improvement compared to Q3 2022 “due to strong demand for its network and services”. A 23% increase in revenue per seat compared to the previous year together with a 2% reduction in cost per seat excluding fuel and easyJet Holidays’ pre-tax profit of £49 million “drives the group towards good results for the 2023 fiscal year”.
- Growth in the number of passengers: +7% compared to the previous year at 23.45 million
- Revenue per seat: +23% compared to the previous year.
- Load factor: +2 pts compared to the previous year at 90%.
- Return on tickets per passenger: +22% compared to the previous year.
- Ancillary revenue yield per passenger: +20% compared to the previous year (+87% vs Q3 of fiscal year 2019)
- The cost per seat excluding fuel is reduced by 2% compared to the previous year.
“We have the right level of crew (pilots and cabin crew)”, continues the press release from easyJet, which also points to a pre-tax profit of 49 million pounds for its subsidiary. easyJet holidays (against 16 million a year ago). This arm “continues to outperform and is expected to deliver over £100m of pre-tax profit for fiscal year 2023”.
Based on current booking trends, easyJet expects the fourth trimester “records another record performance in terms of pre-tax profit, with revenue per seat up around 10% compared to the previous year and cost per seat excluding fuel for the second half of 2023 which should remain stable compared to the previous year. These forecasts depend on the operating environment, specifies the low cost according to which “the whole of the sector having known difficult conditions this summer. Reduced airspace and traffic restrictions are causing unprecedented disruption, as well as an increase in the number of air traffic control strike days, up 40% year-to-date compared to 2019” . Management has taken steps to mitigate the impact of this situation for our customers.
For the first trimester of the 2024 fiscal year (October – December 2023), easyJet anticipates an increase in capacity of more than 15% compared to the previous year, as well as higher yields and load factors. Costs excluding fuel should continue to fall compared to the previous year. The winter season to come shows “a good momentum in reservations, with yields and fill rates higher than the previous year, and a forecast capacity increase of more than 15% for the quarter including December”. Overall non-fuel cost is expected to decline year-on-year and easyJet holidays continues to see demand growth, with winter bookings up more than 100% year-on-year.
EasyJet currently has 163 Airbuses on order, deliverable through 2028. We are currently initiating a process to secure additional firm orders for our longer term fleet plan. This would allow easyJet to replace its older aircraft with additional options to ensure future growth.
Johan Lundgren, CEO of easyJet, said: Our performance in the third quarter was supported by a strong demand from passengers for easyJet’s network and services. We continue to offer great value for our customers, with almost half of easyJet tickets currently on sale for less than £50. We are doing everything possible to mitigate the impact of the difficult external environment on our customers to enable them to take a well-deserved vacation. “.
” We continue to observe a good dynamics as we enter the fourth quarter in which we will operate over 160,000 flights and expect to deliver another record pre-tax profit performance. This winter we are adding more than 15% capacity and bookings are higher than the same period last year “, he added.