Up 36% from last year, passengers spend more than £20 per person in extras
EasyJet passengers were forced to spend more on seat reservations and baggage charges, which allowed the airline to reduce its winter losses.
Combining fares that are more than five times higher, the Luton-based carrier stated that pre-tax losses have narrowed from £213m and £133m between October 2022 and December 2022.
EasyJet focused its efforts on growing “ancillary revenue” during the pandemic. This move brought EasyJet closer to less-expensive rivals such as Ryanair or Wizz. Peter Bellew, a former operating chief at Ryanair, was the mastermind of this initiative.
Last year, Mr Bellew was forced to resign due to a string of cancellations that occurred during the summer holidays.
EasyJet was within reach of doubling its ancillary revenue, which would also include onboard food and beverages, during the last three months of 2019. This is in comparison to the pre-pandemic levels.
Customers spend £20.12 per customer on add-ons, which is 36pc more than last year.
Ryanair has also enjoyed record bookings in January, as people take advantage of the Covid restrictions being eased.
Johan Lundgren was the chief executive and hailed the increase in what he called “step-changed revenue capabilities”.
He stated, “We have seen strong demand for travel… we carry almost 50pc fewer customers than last year.”
EasyJet shares rose by more than 7pc in morning trading, which is a rare boost for an airline that has struggled to gain momentum since the pandemic.
Bosses proclaimed that the airline would surpass City expectations in 2023, driving positive sentiment.
Mr Lundgren stated that he expects to see the winter loss decrease significantly in the first half of this year compared to last. This will put us on the right track to deliver a full-year profit. We anticipate beating the market expectation, allowing us to create value for customers, investors, and the economies that we serve.
Stephen Furlong, a stock broker Davy analyst, did however warn the airline.
He stated that “Load factors” (the number of passengers on each plane) are lower than 2019 levels, as the late booking pattern continues.
Gerald Khoo from Liberum, a broker, stated: “EasyJet is experiencing strong booking momentum for this year, with record revenue booking days in January.”
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