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easyJet PLC on Wednesday said it expects its annual outturn to top market expectations, as the budget airline experienced strong bookings and demand at the start of its financial year.
easyJet shares shot up 9.1% to 510.60 pence each in London on Wednesday morning, among the best FTSE 250 performers. The stock is down 16% over the past 12 months.
For the financial first quarter that ended December 31, easyJet said it made a headline pretax loss of £133 million, narrowed from £213 million a year earlier. Revenue improved 83% to £1.47 billion from £805 million.
‘easyJet’s first quarter financial performance was ahead of expectations as yields strengthened, with revenue per seat increasing 36% year-on-year,’ the company said.
It said passenger numbers grew 47% year-on-year and its load factor improved to 87% from 77%.
The budget carrier also hailed progress at its easyJet holidays package holiday offering. It reported £13 million in profit from the unit, swinging from a £1 million loss 12 months earlier.
Revenue per seat at group level was 36% higher on-year at £68.47. That progress is expected to continue in the second quarter.
Bookings since the turn of the calendar year have surged, with the company achieving ‘record-breaking weekends for sales revenue this month’.
‘Moving into the second quarter of this financial year, easyJet expects [revenue per seat] growth year-on-year to continue the trend experienced in Q1. This is driven by yield and load factor growth alongside the continued delivery of ancillary products. easyJet holidays will continue to see customer growth through the quarter, alongside investment into marketing and advertising as part of the turn of year sale campaign,’ easyJet guided.
Looking further ahead, easyJet said bookings for Easter are ‘currently trading very well’. Tickets sold for the period, which sits in the third-quarter this financial year, are up 24% from pre-virus levels.
easyJet expects its first-half loss to narrow year-on-year, and it expects its annual profit to beat market expectations.
easyJet is expected to make pretax profit of £126 million for the current financial year. In financial 2022, it had made a statutory pretax loss of £208 million and a headline pretax loss of £178 million.
Should easyJet achieve an annual profit, it will be its first since financial 2019, prior to the Covid-19 pandemic blocking travel and emptying skies.
Its statutory pretax loss was £1.04 billion in financial 2021, narrowed from £1.27 billion the year earlier. In financial 2019, it had made a pretax profit of £445 million.
By Eric Cunha, Alliance News news editor
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