22nd Jan 2025 08:48
(Alliance News) - easyJet PLC on Wednesday said demand for flights and holidays remains strong as it reported a narrowed first quarter loss.
The Luton, England-based budget airline said pretax loss was GBP61 million in the three months to December 31 narrowed from GBP126 million a year prior.
Revenue rose 13% to GBP2.04 billion from GBP1.80 billion. Within this passenger revenue increased 11% to GBP1.26 billion from GBP1.13 billion, ancillary revenue grew 10% to GBP535 million from GBP486 million and holidays revenue leapt 36% to GBP247 million from GBP181 million.
Total revenue per available seat kilometres ebbed slightly to GBP5.93 from GBP5.95 but total airline revenue per seat rose 6% to GBP74.36 from GBP70.39.
Passenger numbers in the quarter increased 7.1% to 21.2 million from 19.8 million.
"easyJet's first quarter result significantly improved as demand for our primary airport network and package holidays continued, alongside cost control and favourable fuel prices," the firm said in a statement.
Chief Executive Kenton Jarvis, CEO of easyJet said: "Looking to this summer, we have seen continuing demand for easyJet's flights and holidays where we have one million more customers already booked, with firm favourites like Palma, Faro and Alicante as well as new destinations like Tunisia and Cairo proving popular. All of this demonstrates positive progress towards our medium term target to deliver more than one billion pounds of profit before tax."
easyJet said current booking trends are supportive of full year consensus. A company compiled consensus for headline pretax profit is GBP709 million, would be growth of 16% from GBP610 million in the 12 months to September 30, 2024.
Despite the positive tone, shares in the airline were 3.9% lower at 491.30 pence each in London on Wednesday.
easyJet expects first half underlying winter losses to reduce when adjusted for the timing of Easter and a prior year release of aged balances.
Second quarter forward bookings are 57% sold, up two percentage points on-year, third quarter bookings are 26% sold, up two percentage points, and the fourth quarter is 13% sold, up one percentage point.
easyJet holidays expects around 25% customer growth year-on-year with first half bookings 93% sold, and the second half 45% sold.
The company expects average seat capacity growth of around 8% for its full financial year, which ends on September 30.
By Jeremy Cutler, Alliance News reporter
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