- Shares down 4% to 420p
- Plans to resume dividends, payable early 2024
- New Airbus aircraft order
Shares in EasyJet (EZJ) fell 4.5% after guiding for full-year profit below market expectations.
The company expects £440 million to £460 million headline pre-tax profit whereas the analyst consensus forecast before the trading update was £469 million.
EasyJet announced new growth targets, a deal to to buy 157 new planes and a plan to resume dividends.
Chief executive Johan Lundgren commented: ‘Our new medium-term targets provide the building blocks to deliver a pre-tax profit greater than £1 billion. This will be driven by reducing winter losses, upgauging our fleet and growing EasyJet holidays. As part of our commitment to shareholder returns, the board intends to reinstate dividends commencing with the full year 2023 results.
‘We have also reached a proposed agreement with Airbus for an additional 157 aircraft order and a further one hundred purchase rights.
‘This will enable EasyJet’s fleet modernisation and growth to continue beyond 2028 while providing substantial benefits including cost efficiencies and sustainability improvements.’
PASSENGER GROWTH
For its fourth quarter, the company reported 8% year-on-year passenger growth with ticket yield per passenger up 9% year-on-year.
Other highlights included the performance of its package holidays business which is expected to deliver around £120 million pre-tax profit for the full year 2023.
SHAREHOLDER RETURNS
EasyJet is hoping to pay shareholders 10% of headline profit after tax for full year ending 30 September 2023. This pay-out is expected to rise to 20% of headline post-tax profit for the year to 30 September 2024.
The company said there was also the potential to increase the level of future returns over the coming years.
