EasyJet records 16% rise in profits
The budget carrier reported headline pre-tax profits of £236 million for the three months to June 30, up from £203 million a year ago.
Budget airline easyJet has notched up a 16% increase in third-quarter profits and said it remains on track for a record summer performance.
The carrier reported headline pre-tax profits of £236 million for the three months to June 30, up from £203 million a year ago.
It carried 8% more passengers in the quarter at 25.3 million and said trading was also boosted by strong demand for easyJet Holidays, with the division seeing pre-tax profits jump to £73 million from £49 million a year earlier.
EasyJet now expects the holidays arm to deliver annual pre-tax profits of more than £180 million, up more than 48% year on year.
Outgoing chief executive Johan Lundgren said: “Our strong performance in the quarter has been driven by more customers choosing easyJet for our unrivalled network of destinations and value for money.
“This result was achieved despite Easter falling into March this year, demonstrating the continued importance of travel and this means we remain on track to deliver another record-breaking summer, taking us a step closer to our medium-term targets.”
On Monday, rival airline Ryanair said over the peak summer months airfares will be “materially lower” than last year, as it reported plummeting quarterly profits.
Lower prices over spring pushed profits down 46% to 360 million euros (£303 million) for the three months to June 30.
The average fare fell 15% to 42 euros (£35) year on year, while passenger numbers rose 10% to 55.5 million.
Asked about the contrast in financial results, Mr Lundgren said it is “difficult to comment” as only 20% of easyJet’s network operates “head-to-head” with Ryanair.
He added that easyJet’s performance is “in line with the guidance that we have previously given” and “demand for the network and for the brand is strong”.
Mr Lundgren said in July easyJet suffered a 28% increase in delays caused by air traffic control (ATC) restrictions compared with the same month in 2023.
He said parts of Europe are “consistently understaffed” for air traffic controllers.
He questioned if constraints blamed by ATC on severe weather are being “labelled correctly” or whether “they can’t cope” with the volume of flights.
The amount of disruption is “not acceptable” and there is “no excuse”, he said.
Mr Lundgren added: “We’re working with it, and every day we’re trying to see what we can do – together with other airlines also – to improve the situation, but it is challenging.”
