EasyJet expects bigger profits as summer bookings soar

EasyJet has lifted its profit outlook for this year after summer bookings surged and passenger numbers over Easter returned to pre-pandemic levels.

The budget airline has increased capacity, by 40% from January to March, and expects to be back to about pre-pandemic levels in the summer.

Its package holidays are 80% sold for this summer and with UK demand strong, the company expects 60% growth for the division compared with last year, up from 50% estimated previously.

At Easter, demand was strong and easyJet operated an average of about 1,600 flights a day. Passenger levels were back to 2019 levels, despite disruption from French air traffic control strikes through April.

Despite higher fuel costs, the airline expects to beat analysts’ expectations of a profit of £260m this year, as it raises ticket prices. Last year, easyJet made a headline loss before tax of £178m.

The company said it had completed its largest ever crew recruitment campaign. Airlines hope to avoid a repeat of last summer when staff shortages led to massive queues at airports, delays and tens of thousands of flights being cancelled. The travel industry struggled to cope with a surge in demand after governments ditched Covid-19 travel restrictions. At the height of the pandemic, thousands of staff were laid off as flights were grounded.

Since then, the industry has bounced back, as people are keen to travel again after Covid lockdowns and travel bans.

EasyJet flew 15.6 million passengers between January and March, up from 11.5 million a year earlier. Its load factor, which measures how full planes were, improved to 88% from 78%.

The airline anticipates that it will make revenues of £2.7bn in the first half to the end of March, against costs of £3.1m, resulting in a half-year loss before tax of between £405m and £425m.

Johan Lundgren, the chief executive said: “Demand for easyJet’s flights and holidays has continued to grow in the half, resulting in … a £1bn revenue improvement year on year.

“We see continued strong booking momentum into summer as customers prioritise spending on travel.”