EasyJet bucks budget airline trend with record-breaking summer

EasyJet reported a rise in annual profits following a second record-breaking summer, as the low-cost airline reassured investors that the outlook for travel next year was “positive”. The carrier on Wednesday reported pre-tax profits of GBP610mn for the 12 months to the end of September, up from GBP455mn a year earlier. Profits for the peak summer months rose 11% to a record GBP960m, as easyJet carried more passengers and airfares held steady. Its package holiday business also reported a strong year, as pre-tax profits rose 56% to GBP190m. The airline forecast a “positive” outlook for its current financial year, when it plans to increase its flying schedules by 3%. The company also said it would more than double its dividend to 12.1 pence per share, up from 4.5 pence in 2023. Revenues rose 14% over the year to £9.3bn, helped by an 8% increase in capacity to 100.4mn seats. “The outlook for easyJet is positive and travel remains a firm priority with consumers,” said Kenton Jarvis, easyJet’s CFO, who will take over as CE early next year. EasyJet’s results contrast with Europe’s two other major low-cost airlines, Ryanair and Wizz Air, which both saw profits fall over the summer. Ryanair has flagged pressures on airfares thanks to “consumer spending pressure”, while Wizz Air has faced major disruption problems because of issues with the engines on its planes. EasyJet typically targets a higher end of the market, and competes with national carriers such as British Airways from more expensive airports. BA owner International Airlines Group reported record summer profits this year.<br/>