easyJet PLC on Thursday reported a ‘positive outlook’ for the remainder of its financial year, as it trimmed ‘seasonal losses’ in its first half.
easyJet shares were up 3.7% to 537.40 pence each in London on Thursday morning. It was among the best-performing large cap stocks.
The Luton, England-based budget carrier expects to report a 22% surge in revenue for the six months to March 31, rising to £3.27 billion from £2.69 billion.
Its headline pretax loss slimmed to £350 million from £411 million.
‘This improvement was driven by target capacity growth where demand was strongest, alongside productivity and utilisation benefits which enabled ex-fuel unit costs to remain flat year-on-year’, easyJet said.
Conflict in the Middle East cost the company around £40.0 million in the first half of this year, and flying into Israel has been suspended for the summer.
easyJet said that ‘Easter demand was particularly strong’ and ‘bookings for summer 2024 continue to build well’, signalling the growth potential for customer orders in the second half of the year. easyJet Holidays has currently sold 70% of its programme for this summer. Holidays is its package holidays business.
The company maintained its outlook for a year-on-year growth in customers of more than 35% in the package holidays arm for financial 2024.
Chief Executive Officer Johan Lundgren said: ‘The importance that consumers place on travel coupled with easyJet’s trusted brand has driven good demand for our flights and holidays. Our growth and focus on productivity have reduced winter losses by more than £50.0 million.
‘We have further enhanced our network with the launch of new bases in Alicante and Birmingham, providing greater choice for consumers across Europe. We are well set up operationally for this summer season, where we expect easyJet to be one of the fastest growing major airlines in Europe and take more customers on easyJet Holidays than ever before.’
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