EasyJet lifts guidance as booking demand soars

Low-cost airline easyJet on Tuesday said it expected to beat market expectations for annual profits due to high demand and strong summer bookings after slashing losses in the first six months of the current year.

The company said its headline pre-tax loss was now expected to be £405 - £425m from £545m a year earlier, despite challenges from higher fuel prices and inflation. It forecast summer bookings to return to pre-Covid pandemic levels after ramping up crew numbers.

“Whilst we remain mindful of the uncertain macroeconomic outlook across the globe, based on current high levels of demand and strong bookings, easyJet anticipates exceeding current market profit expectations of £260m for full-year 2023,” easyJet said.

Passenger capacity grew 40% in the first three months of 2023, with 99.8% of Easter flights operating despite strikes among French air traffic controllers.

EasyJet's holidays business is expected to grow 60% in the current year. "We see continued strong booking momentum into summer as customers prioritise spending on travel and choose airlines, like easyJet, offering the best value and destination mix," said Chief executive Johan Lundgren.

Net debt has fallen to £0.2bn pounds from £1.1bn in December, although fuel prices and a stronger US dollar had raised costs.

Reporting by Frank Prenesti for Sharecast.com