EasyJet falls short of returning to full-year profitability
James ChappleEasyJet expects to record a full-year pre-tax group loss of between £170 million and £190 million despite summer passenger numbers almost doubling year-on-year to 24 million and expected summer operating profits of up to £545 million.
The carrier cited a £64 million foreign exchange loss and "incremental disruption costs" of around £75 million incurred over the summer as key factors behind its struggle to return to profitability.
Other factors impacting full-year performance in the year to 30 September included the emergence of the Omicron variant of Covid-19, the war in Ukraine and "industry-wide" operational issues affecting aviation this summer.
Group earnings are expected to break even, and easyJet is also hopeful of getting off to a good start in its 2023 full-year with capacity up more than 30% year-on-year for its first quarter (three months to 31 December) to around 20 million seats – 83% of 2019 levels.
UK capacity for peak travel periods, such as October half-term and Christmas, are back to pre-pandemic levels, with load factors "ahead of the same point in full-year 2019". "This flying schedule retains resilience but also provides a platform to prepare for the summer 23 ramp up," said easyJet.
EasyJet flew 26.3 million passengers during its fourth quarter, 88% of 2019 capacity, with earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs, "in-line with the same period in 2019".
Q4 load factor increased to 92%, with on-the-day cancellations below 2019 levels. EasyJet said operations "normalised" from the start of July, with the operational disruption felt by much of the sector mitigated "management actions".
Johan Lundgren, easyJet chief executive, said a near doubling of summer passenger numbers to 24 million on a load factor of 92% amounted to a "record bounceback", while claiming easyJet continues to boast "one of the strongest balance sheets in the aviation industry".
"EasyJet achieved a record bounceback this summer with Q4 operating profit expected to be between £525 million and £545 million and passenger numbers almost doubling versus last summer to 24 million," said Lundgren. "Demand for our leading network and services remains strong."
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Place of registration: England and Wales.
Company number 08723341.
Registered address: 6th Floor, 2 London Wall Place, London EC2Y 5AU
