easyJet PLC on Tuesday said it expects yearly profit to top market expectations, as the budget carrier enjoyed ‘strong booking momentum’ in its first-half and hailed a return to pre-pandemic capacity levels in the UK over Easter.
For the half-year ended March 31, it expects its headline pretax loss to have narrowed to a range of £405 million and £425 million, from £545 million 12 months earlier.
‘This result is despite challenges from elevated fuel prices, market wide inflation and costs associated with building resilience into the operation ahead of summer 2023,’ the company said.
It expects revenue for the six months to amount to £2.69 billion, up 80% year-on-year from £1.50 billion.
For the full-year, it expects a swing to profit. easyJet anticipates pretax profit to top market consensus of £260 million. easyJet posted a headline pretax loss of £178 million in financial 2022, narrowed from £1.14 billion. Its reported pretax loss had narrowed to £208 million from £1.04 billion.
easyJet noted ‘strong booking momentum’ heading into the summer, with consumers prioritising travel spending and opting for the ‘best value and destination mix’.
‘Easter demand has been strong with around 1,600 flights operating on average per day with robust operational performance achieved. Capacity over Easter, in the UK, was back around pre-pandemic levels, with strong demand and positive yield growth compared to Easter 2019. Disruption from French [air-traffic control] strikes continued to be seen through April, though easyJet’s investment into resilience will help mitigate its impact,’ it said.
In the second quarter, passenger numbers rose 35% from the previous year, and load factor improved to 88% from 78%.
‘We see continued strong booking momentum into summer as customers prioritise spending on travel and choose airlines like easyJet offering the best value and destination mix, as well as easyJet holidays which is continuing its steep growth trajectory as the fastest growing holidays company in the UK,’ said Chief Executive Johan Lundgren.
Shares in the company traded 2.9% higher at 525.56 pence each in London on Tuesday morning, among the best FTSE 250-listed performers.
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