Achi news desk-
In a trading update ahead of its half-year results, easyJet attributed the improvement in its “seasonal” losses in the first half to “targeted capacity growth where demand was strongest, alongside productivity and utilization benefits which enabled costs pre-fuel unit to stay flat. year after year.
High demand for holidays sees easyJet’s profits rise
Admitting that the ongoing conflict in the Middle East had led to a “deep impact” of around £40m, easyJet said its limited capacity on routes in the region, including Egypt, accounted for a smaller fraction of its operations in the summer, up to 0.3% from around 4% during the winter months. He confirmed that this capacity is being used across his network.
Meanwhile, the low-cost airline’s first-half profits were boosted by an early Easter. “Easter demand was particularly strong, benefiting March due to its early timing,” the company said. “Operational performance was good with peak daily flights broadly in line with summer levels.”
It also revealed that its EasyJet Holidays division has grown by 35% year on year and is 70% booked for the summer. “We continue to drive growth in easyJet holidays, with £31m pre-tax profit (+206% compared to its first half in 2023) and customer growth of 42% year on year,” said easyJet.
Launched back in 2019, easyJet Holidays’ growth was hampered by Covid but is now on strong growth as holidaymakers seek a break from the cost of living crisis and prioritize travel for discretionary spending – choosing cost airlines low and brands that provide good value. for money.
Johan Lundgren, CEO of easyJet, said: “The importance consumers place on travel combined with the trusted easyJet brand has driven good demand for our flights and holidays. Our growth and focus on productivity has reduced winter losses by more than £50m.”
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Noting that the airline had “further enhanced our network with the launch of new hubs in Alicante and Birmingham providing more choice for consumers across Europe”, he added: “We are in a good operational position for this summer season where we expect EasyJet being one. of the fastest growing major airlines in Europe and taking more customers on easyJet holidays than ever before.”
Analysts reacted positively to the airline’s trading update, with John Moore, senior investment manager at RBC Brewin Dolphin, noting that “overall, easyJet is well capitalised, efficient, and growing through additional services such as his business EasyJet Holidays”.
He added: “EasyJet has reduced losses for this half of the year, which is generally slower due to the seasonal nature of travel. The airline has continued on its positive course over the past 18 months, boosted by strong holiday demand, while geopolitical tension in the Middle East should have limited impact. ”
easyJet is putting thousands of Scottish flights on sale
Mr Moore said that while there were fears that the current level of customer demand was a temporary boost for travel companies, with some airlines’ share prices failing to take off post-Covid, “it seems likely that consumers will continue to prioritize escape. “. He added: “Although easyJet shares have made some ground in recent months, they are still a long way off where they were in February 2020 and, by most metrics, look very cheap from compared to the wider UK market.”
At the end of last year, easyJet announced plans to increase its presence in Scotland by deploying a sixth aircraft at Glasgow Airport following its busiest ever summer program north of the Border.
In May, it will launch new routes to Enfidha in Tunisia and Larnaca in Cyprus. From June, it will resume flying from Glasgow to destinations including Marseille in France and Pula, Croatia.
easyJet shares rose almost 3% in early trading on Thursday.
