EasyJet has lifted its profit outlook for this year after summer bookings surged and passenger numbers over Easter returned to pre-pandemic levels. The budget airline has ramped up capacity by 40% from January to March, and expects to be back at about pre-pandemic levels in the summer.
Despite higher fuel costs, the airline expects to beat analysts' expectations of a profit of £260m this year, as it raises ticket prices. Last year, easyJet made a headline loss before tax of £178m and the company said it had completed its largest ever crew recruitment campaign.
The airline anticipates that it will make revenues of £2.7bn in the first half to the end of March, against costs of £3.1m, resulting in a half-year loss before tax.
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EasyJet shares rose on Tuesday as it hiked earnings guidance for the full year. The budget operator stated that it expects pre-tax losses ranging between £405 million and £425 million for six months ending March while anticipating full-year profits surpassing market forecasts standing at around£260 million.
Revenue from easyJet Holidays package holidays division increased by 218% amounting to approximately £175million with capacity growth continuing into summer months .Fuel costs per seat during first 6-month period leapt by71%, reaching $20.43; nonetheless,the airline described Easter demand as “strong”- operating nearly1 ,600 flights daily over holiday period.
Analysts noted that "the sun is shining" on easyJet's summer prospects, pointing out that the short-haul network of routes should be a strength given that travelers may be more likely to opt for a quick trip to Europe than a pricier transatlantic vacation.
Johan Lundgren, CEO of easyJet, commented: “I am pleased with our performance in the first half, which has been driven by strong demand across our network and particularly in leisure destinations such as Malaga and Palma de Mallorca."
He added: "Our disciplined approach to capacity growth will continue into the summer season as we target further improvement in profitability.”