Shares in easyJet rose on Wednesday as a record summer, helped by strong demand for its package holidays, propelled full-year profits sharply higher.
At 555p per share, easyJet was last 2.7% higher in midweek trade, making it the FTSE 100’s biggest gainer.
Revenues rose 14% in the 12 months to September, to £9.3 billion, the low-cost flyer said. Pre-tax profit leapt 34% to £610 million, with the business enjoying record-profits of £910 million in the second half.
easyJet said its revenues jump was “due to an increase of 8% in capacity to 100.4 million seats,” combined with “the continued growth of easyJet holidays and total per seat pricing strength.”
Airline passenger revenue per seat crept 1% higher, to £56.90.
Headline costs (excluding fuel) rose 14% to £6.5 billion, reflecting higher capacity and the growth of easyJet Holidays.
Total fuel costs rose 9% to £2.2 billion, as conflict in the Middle East drove oil prices higher at the start of the year.
easyJet said it plans to hike the full-year dividend to 12.1p per share from 4.5p for the previous fiscal period.
It finished the year with net cash of £181 million versus £41 million previously.
Package Holidays Impresses
easyJet Holidays was once again the standout performer last year. Sales at the firm’s package trip division exploded 47% year on year to £1.1 billion.
Customer numbers here grew 36%, while easyJet Holidays’ market share rose to 7% from 5% a year earlier.
Air passenger revenues increased 9% from financial 2023, to £5.7 billion, as the number of flights rose to 558,960 from 519,426. Load factor remained stable at 89.3%.
Airline ancillary turnover rose 13% year on year, to £2.5 billion.
Positive Outlook
Chief executive Johan Lundgren said that easyJet’s “strong” result “reflects the effectiveness and execution of our strategy as well as continued popularity of our flights and holidays.”
Lundgren — who is due to vacate the hot seat after seven years on 1 January — added that last year’s outcome “also represents a significant step towards our goal of sustainably generating over £1 billion annual profit before tax.”
Describing its “positive” outlook for this year, easyJet said that it plans to increase capacity 3% to 103 million seats.
Meanwhile, it plans to grow customer numbers at easyJet Holidays by around 25% year on year.
easyJet added that “we expect to reduce winter losses with a significant improvement in quarter one, with quarter two impacted by the timing of Easter and a prior year release of aged balances.”
The airline said that the current quarter is 80% sold, while the second quarter is 26% sold.
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