EasyJet is optimistic in its outlook due to continued strong demand (Credit: iStock)
In a trading statement covering the six months to 31 March, easyJet said it expected a pre-tax loss of £340-£360 million for the winter period, which is traditionally loss-making. The exception is easyJet holidays, which is forecast to make a profit before tax of around £31 million, triple the previous year, following a 42% growth in sales.
EasyJet also put its improved position down to targeting capacity where demand was strongest, which helped overcome cost increases of 6% and the £40 million drop in revenue caused by the Middle East crisis. The forecast was also buoyed by the early Easter.
It said: “Pricing was very strong at the start of the period, with October seeing revenue per seat of +12% year-on-year. However, the onset of the conflict in the Middle East on 7 October resulted in a pause in flights to Israel and Jordan and a temporary slowdown in flight bookings for the wider industry.”
Looking ahead, easyJet said summer 2024 bookings “continue to build well, with an increase in volume and pricing compared to the same period last year”. Currently, the peak summer seat-only programme is 60% sold, up one percentage point. EasyJet holidays is currently 70% sold for this summer.