- 34% rise in annual pre-tax profit to £610 million
- Proposed dividend increase
- Expects to reduce winter losses
EasyJet (EZJ) shares made marginal gains this morning after the low-budget airline reported a 34% rise in pre-tax profit to £610 million for the year ending 30 September.
There was good news for EasyJet holidays’ division which reported a pre-tax profit of £190 million, driven by 36% growth in customer numbers, showing that people are still booking holidays despite a squeeze on household budgets.
Kenton Jarvis, EasyJet's CFO and CEO designate, said: ‘The outlook for easyJet is positive and travel remains a firm priority with consumers who value our low fares, unrivalled network and friendly service. The airline will continue to grow, particularly on popular longer leisure routes like North Africa and the Canaries and we plan to take 25% more customers away on package holidays, as easyJet holidays continues to thrive.’
The low-budget airline also said that it managed to reduce winter losses by £40 million ‘through a combination of productivity and utilisation benefits.’
SHAREHOLDER RETURNS
EasyJet shareholders were greeted with a proposed increase in the ordinary dividend of 12.1p per share compared with 4.5p last year. This represents 20% of the headline pre-tax profit.
The increase is subject to shareholder approval at the upcoming annual general meeting.
If approved this will be paid on 21 March 2025 to shareholders on the register at the close of business on 21 February 2025.
EXPERT VIEW
Dan Coatsworth, investment analyst at AJ Bell said: ‘Another record summer from the group, with planes running close to capacity despite a big expansion in its fleet, means CEO Johan Lundgren is leaving the controls with EasyJet in decent shape.
‘Jarvis still has a challenge on his hands to steer the company towards some ambitious medium-term profit targets and it’s fair to expect some turbulence along the way given the wider supply chain issues in the sector and exposure to volatile fuel prices.
‘However, EasyJet is in much better shape than it was a few years ago and that’s reflected in a big uplift in the dividend which signals confidence in its future trajectory.’
Back in May, the low-budget airline announced that CEO Johan Lundgren will be stepping down and EasyJet CFO Kenton Jarvis will be replacing him in early 2025.
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author (Sabuhi Gard) and the editor (Martin Gamble) own share on AJ Bell.
