EasyJet is positive about 2023, as it reports a substantial fall in losses

EasyJet PLC reported that bookings for next year are positive, reporting a substantial reduction in annual losses to £178mln, compared with £1,136mln.

The increase in capacity flown and the continued revenue generation from ancillary products led to a 296% increase in total revenue to £5,769mln for the year ended 30 September 2022, compared to £1,458mln last year.

EasyJet’s year-end results will serve as a gauge of its performance in the coming year

According to the budget airline operator, EBITDAR reached a new record of £674mln for quarter four. This is an increase from £82mln last year. The operational performance was also better than in pre-pandemic 2019, with fewer cancellations on days.

As demand returned and travel restrictions eased through the year, passenger revenue rose by 282% to reach £3,816mln, up from £1,000mln last year.

As capacity increased and EasyJet continued its rapid growth, group ancillary revenue rose by 326% to £1,953mln.

EasyJet projects quarter one RPS will increase by more than 20% year-on-year, with load factor growth exceeding 10 percentage points.

Capacity is expected to rise 25% to 38mln seats in the first half. This is expected to increase to 56mln by the end of the year. Capacity is expected to be back at pre-pandemic levels by quarter four.

Johan Lundgren is easyJet’s chief Executive Officer. He stated: “The summer saw easyJet reach its highest ever earnings for one quarter with headline EBITDAR at £674mln and ancillaries up 59% in FY19. EasyJet holidays are well on their way to reaching its £100mln target.

“EasyJet excels in difficult times.

“Consumers will look for value, not just holiday protection. EasyJet will benefit from its primary airport network as customers vote with the wallets.”

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