easyJet PLC on Tuesday reported a ‘record bounce back, as revenue jumped, significantly narrowing its annual loss.

The London Luton Airport-based low-cost airline said revenue in the financial year that ended September 30 multiplied to £5.77 billion from £1.46 billion, while its pretax loss narrowed to £208 million from £1.04 billion.

easyJet credited the relaxation of Covid-19 restrictions and an increase in ancillary product sales for the revenue rise. Group ancillary revenue trebled to £1.95 billion from £458 million, while passenger numbers totalled 69.7 million during the period with an 86% load factor, more than trebling from 20.4 million with a 73% load factor a year earlier.

easyJet said it expected a further 10 percentage point increase in load factor during the first quarter of financial 2023. It also forecasted revenue per seat growth of more than 20% compared to the first quarter of its financial 2022.

easyJet said seat capacity would be up 25% to 38 million during the first half of its new financial year from a year prior, while the second half was projected to have 56 million seats and the fourth quarter would see a return to pre-pandemic levels.

Early bookings for the new financial year also look positive. Ticket yields for the Christmas period are currently up around 18% compared to last year, while the Easter period similarly looks strong.

‘easyJet does well in tough times. Legacy carriers will struggle in this high-cost environment. Consumers will protect their holidays but look for value and across its primary airport network, easyJet will be the beneficiary as customers vote with their wallets,’ said Chief Executive Johan Lundgren.

Shares in easyJet were down 4.5% to 375.30 pence in London on Tuesday morning. It did not declare a dividend to shareholders for financial 2022, due to the continued losses.

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