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- EasyJet reported its overall first quarter pre-tax loss fell 52% to £61m
- A total of 21.2 million passengers traveled with the low-cost airline in the first quarter
EasyJet trimmed its first-quarter losses after the airline enjoyed falling fuel costs and carried more people during the Christmas season.
The FTSE 100 company reported its overall pre-tax losses fell 52 per cent to £61m in the three months to December.
A total of 21.2 million passengers traveled with the low-cost airline, 1.4 million more customers than in the same period last year, which helped increase its revenue by 13 percent to more than 2 billion of pounds sterling.
Turnover was also boosted by increased demand in the group’s package travel division, which saw profits rise by £12m to £43m as a result.
While Easyjet still made an overall loss – typical of the winter months when demand is lower – its fuel costs fell 3 per cent to £500 million despite the company operating almost 5,000 extra flights.
Meanwhile, its load factor – the percentage of seats occupied by passengers – rose by 1.9 percentage points to 88.2 percent.
Growth: A total of 21.2 million passengers traveled with EasyJet in the first quarter, 1.4 million more customers than in the same period last year.
It now anticipates lower underlying winter losses in the first half, with forward bookings for the second quarter rising two percentage points from a year ago, reaching 57 percent.
Kenton Jarvis, CEO of EasyJet, also highlighted that the company already has a million more customers booked for this summer, with Palma, Faro and Alicante among the most popular destinations.
“All of this demonstrates positive progress towards our medium-term target of generating over £1bn of pre-tax profits,” he added.
Jarvis replaced Johan Lundgren as chief executive in January, having previously joined EasyJet as chief financial officer in early 2021, when Covid-related restrictions severely suppressed demand for overseas holidays.
EasyJet posted annual pre-tax losses of £1.3bn and £1bn in 2020 and 2021 respectively, but trading has since recovered significantly despite strikes and staffing issues.
In its most recent financial year, the group achieved a pre-tax profit of £610 million thanks to increased ancillary income and excellent sales of holiday packages.
The company took delivery of six new Airbus A320neo aircraft during the quarter, followed by a seventh in January, while another two aircraft will come into operation in the summer peak.
John Moore, investment director at RBC Brewin Dolphin, said: “Unlike Ryanair, easyJet has a balanced fleet by manufacturer so the dispute with Boeing should not unduly affect it.
“That issue, and concerns about post-Budget consumer confidence, appear to be the only clouds on the horizon, although advance bookings are strong and the holiday business continues to generate strong growth.”
EasyJet shares They were down 2.25 per cent to 499.7 pence early on Wednesday and remain around 60 per cent below their pre-pandemic levels.
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