In its yearly earnings results, low-fare airline easyJet announced a record FY23 profit of GB£455 million (before tax), far exceeding last year’s loss of £208 million and its first since the start of the pandemic.
Yet, it warned that its early winter results for 2024 would face a hit as a result of the ongoing conflict in the Middle East. Whilst flights to this region (including Egypt, Jordan and Israel) account for only 4% of capacity, it does not anticipate its current Q1 loss to improve year on year.
The carrier achieved record performance during the summer of 2023 despite high fuel costs and external operational difficulties. It foresees a similar “positive outlook” for its 2024 summer period, based on present booking strength.
Total revenue saw a significant rise of 42%, reaching £8,171 million, compared to £5,769 million in 2022. Passenger revenue increased by 37% to £5,221 million, up from £3,816 million, whilst ancillaries saw the biggest rise at 51% increase to £2,950 million.
Commenting on the results, Johan Lundgren, easyJet’s Chief Executive Officer, said: “Our record summer performance demonstrates the success of our strategy, and that demand for easyJet remains strong as customers choose us for our network and value.
“We see a positive outlook for this year with airline and holiday bookings both ahead year on year, and recent consumer research highlights that around three-quarters of Britons plan to spend more on their holidays versus last year, with travel continuing to be the top priority for household discretionary spending.”
Notably, the airline disclosed its intent to exercise conversion rights for its current orderbook of 35 A320neo aircraft to be converted into A321neos. This, along with its Proposed Purchase of 100 further aircraft, will deliver lower fuel burn, CO2 emissions and operating costs per seat.
