UK-based budget airline, easyJet, has announced that it expects to return to profitability for the first time since the outbreak of the pandemic in early 2020. The airline reported that its performance in the last quarter of 2022 was better than expected, thanks to strong bookings during the pre-Christmas period. This helped to increase group revenue by 83% to £1.47 billion compared to the same period in 2021. Passenger numbers were also up by 47% from 11.9 million to 17.5 million year-on-year.
Although easyJet still recorded a loss of £133 million during the quarter, this was a 38% improvement on the airline’s deficit of £213 million from the same period in 2021 when Covid-related travel restrictions were still in place. The CEO of easyJet, Johan Lundgren, said that the strong booking performance and increased revenue capability have driven a £80 million year-on-year boost in the first quarter. He added that the company expects to see a significant reduction in its winter loss over the first half of the year, which will set the company on the path to delivering a full-year profit and creating value for customers, investors and the economies it serves.
easyJet’s capacity during the October-December quarter reached 20.2 million seats, an increase from 15.5 million in 2021. The load factor also increased by 10% to 87% over the same period. Although these numbers remain below pre-pandemic levels, easyJet is optimistic about reaching pre-Covid capacity levels in the peak summer quarter from July to September. The airline plans to have a total of around 94 million seats during the current financial year.
The company also saw an increase in revenue per seat, which rose by 36% from the same quarter in 2021 to reach £68.47. This was due to a 21% rise in ticket yield and a 20% increase in the yield from selling ancillaries. easyJet now earns an average of £20.12 per seat from selling these add-ons.
The news of easyJet’s expected return to profitability is a positive sign for the aviation industry, which has been heavily impacted by the pandemic. The company’s strong booking performance and increased revenue capability are a testament to the public’s desire to travel again. As more people get vaccinated and travel restrictions ease, easyJet’s plans to reach pre-Covid capacity levels and create value for customers, investors and the economies it serves are indicative of a positive outlook for the future.
