EasyJet swings to profit and reinstates dividend as travel demand soars
EasyJet has swung to profit amid a surge in demand for travel, enabling the low-cost carrier to reinstate its dividend for the first time since the pandemic. The airline on Tuesday said revenues rose 42% to GBP8b in the 12 months to September. It posted a profit before tax of GBP455m over the same period, following a loss of GBP178m last year, after a “record” summer boosted earnings. EasyJet is one of the first major European airlines to announce the resumption of shareholder payouts after the spread of Covid-19 led to widespread disruption in the aviation industry. The carrier announced a dividend of 4.5p a share, amounting to a GBP34mn payout. EasyJet’s share price was up almost 4% by lunchtime on Tuesday. CE Johan Lundgren said: “Our record summer performance demonstrates the success of our strategy and that demand for easyJet remains strong.” He added: “We see a positive outlook for this year with airline and [holiday] bookings both ahead year on year.” EasyJet said the current fiscal year had started with a strong growth in profit. However, the airline warned that early winter results for its 2024 fiscal year would be affected by the war in Gaza, with flights to Israel and Jordan temporarily paused until January 8. “[The war] will have an impact,” said Lundgren. “But I think what’s important to note is the bookings have started to come back quite significantly . . . and that’s the same booking pattern that we saw after the Russian invasion of Ukraine.” Andrew Lobbenberg, aviation analyst at Barclays, said the Israel-Hamas war had a “material impact” on easyJet “albeit one that is fading now”. Lobbenberg anticipated an improved performance in the three months to March, as the effect of the war is “easing on booking trends with good momentum at the moment, except for services to the immediate area of Israel, Jordan and Egypt”. The company said fuel costs increased 59% to GBP2b in the 12 months to September when compared with the same period last year. The carrier noted that the price of jet fuel remained high due to increased global demand following the resumption of pre-pandemic levels of flying and increased economic activity, as well as a restriction in the supply of fuel from the Opec+ oil cartel.<br/>
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EasyJet swings to profit and reinstates dividend as travel demand soars
EasyJet has swung to profit amid a surge in demand for travel, enabling the low-cost carrier to reinstate its dividend for the first time since the pandemic. The airline on Tuesday said revenues rose 42% to GBP8b in the 12 months to September. It posted a profit before tax of GBP455m over the same period, following a loss of GBP178m last year, after a “record” summer boosted earnings. EasyJet is one of the first major European airlines to announce the resumption of shareholder payouts after the spread of Covid-19 led to widespread disruption in the aviation industry. The carrier announced a dividend of 4.5p a share, amounting to a GBP34mn payout. EasyJet’s share price was up almost 4% by lunchtime on Tuesday. CE Johan Lundgren said: “Our record summer performance demonstrates the success of our strategy and that demand for easyJet remains strong.” He added: “We see a positive outlook for this year with airline and [holiday] bookings both ahead year on year.” EasyJet said the current fiscal year had started with a strong growth in profit. However, the airline warned that early winter results for its 2024 fiscal year would be affected by the war in Gaza, with flights to Israel and Jordan temporarily paused until January 8. “[The war] will have an impact,” said Lundgren. “But I think what’s important to note is the bookings have started to come back quite significantly . . . and that’s the same booking pattern that we saw after the Russian invasion of Ukraine.” Andrew Lobbenberg, aviation analyst at Barclays, said the Israel-Hamas war had a “material impact” on easyJet “albeit one that is fading now”. Lobbenberg anticipated an improved performance in the three months to March, as the effect of the war is “easing on booking trends with good momentum at the moment, except for services to the immediate area of Israel, Jordan and Egypt”. The company said fuel costs increased 59% to GBP2b in the 12 months to September when compared with the same period last year. The carrier noted that the price of jet fuel remained high due to increased global demand following the resumption of pre-pandemic levels of flying and increased economic activity, as well as a restriction in the supply of fuel from the Opec+ oil cartel.<br/>
