EasyJet said air fares are excepted to increase this summer after the European budget airline posted smaller-than-expected winter losses for the six months prior to 31 March 2024.
In an earnings update on Thursday (18 April), the carrier said ‘seasonal’ losses have been reduced more than £50 million year on year following increased demand and 'targeted' capacity growth.
Headline losses before tax for the first half of its 2024 financial year (from October 2023 to end March 2024) are expected to be between £340 and £360 million.
The carrier reported total H1 group revenues of £3.3 billion, an increase from £2.7 for the same period in 2023. Airline ancillary and passenger revenue also increased year on year to £910 million and £2.1 billion, respectively. Airline passenger revenues per seat increased 5 per cent year on year to £48.34, while per seat ancillaries increased 6 per cent to £21.53.
Customer growth was also reported for easyJet holidays, with H1 revenues increasing 79 per cent year on year to £310 million, and a notable 206 per cent increase in yearly profits to £31 million before tax.
According to the carrier, the result was achieved despite both increased fuel prices and the ongoing conflict in the Middle East, which has resulted in a direct £40 million loss for the carrier in H1 2024.
Despite several European carriers having already resumed flights to Israel, easyjet said it will continue to suspend flights to the country throughout the summer, with capacity redeployed “across the network”.
Bookings for summer 2024 “continue to build well” and the carrier expects an increase in both volumes and pricing compared to the same period last year.
Following the launch of new bases in Alicante and Birmingham, easyJet CEO Johan Lundgren said the carrier’s H2 capacity growth is on track, with an expected 8 per cent year-on-year increase.
“We are well set up operationally for this summer season where we expect easyJet to be one of the fastest growing major airlines in Europe and take more customers on easyJet holidays than ever before,” he said.