EasyJet cuts pre-tax losses

EasyJet profits
By Lisa James
Home » EasyJet cuts pre-tax losses

EasyJet says it has ‘one of the strongest balance sheets in European aviation’, claiming it will do better than rival carriers as customers seek out value during the cost-of-living crisis.

Announcing its results for the 12 months to 30 September 2022, the company said it had achieved a ‘record bounce back’, with pre-tax headline losses narrowing to £178 million, from £1.13 billion last year.

Chief Executive Johan Lundgren said: “EasyJet does well in tough times. Legacy carriers will struggle in this high-cost environment. 

“Consumers will protect their holidays but look for value and across its primary airport network, easyJet will be the beneficiary as customers vote with their wallets.

“EasyJet has achieved a record bounce back this summer with a performance which underlines that our transformation is delivering.

“The summer saw easyJet achieve its highest ever earnings for a single quarter with headline EBITDAR [earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs] of £674 million, ancillaries up by 59% on FY19 and easyJet holidays well on its way to its £100m target.”

EasyJet said peak holiday weeks this winter, such as October half term and Christmas week in the UK, are back to normal levels of volume, with prices higher than last year. In particular, ticket yields for the Christmas period are about 18% higher.

Further ahead, easyJet said: “Visibility over bookings in the second half remains low, however Easter booked ticket yields are strong and booked load factors for Easter are ahead of the prior year.”

EasyJet’s full-year results coincided with research by the company, which reveals holidays are top of the list of things people want to spend money on next year.

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