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EasyJet sees 2023 profit beating market views after first half pretax loss narrowed

easyJet PLC

said Tuesday that it expects to beat market expectations for fiscal 2023 profit and that its headline pretax loss narrowed for the first half of the year.

The low-cost airline said that while it remains mindful of the uncertain macroeconomic outlook, based on current high levels of demand and strong bookings, it expects to beat market profit expectations for the year ending Sept. 30, which it provided as being 260 million pounds ($321.8 million).

easyJet Holidays is also benefiting from strong U.K. demand, and its growth expectations have been raised to 60% on year from 50%.

For the six months ended March 31, easyJet expects to report headline pretax loss–a key metric that strips out exceptional and other one-off items–in the range of GBP405 million to GBP425 million, reflecting measures including network optimization, improved ancillary products and continued cost focus, allowing it to take advantage of strong levels of demand. The company reported a headline pretax loss of GBP545 million for the first half of fiscal 2022.

easyJet said it expects to report revenue for the period of GBP2.69 billion compared with GBP1.5 billion a year earlier.

The company flew 15.6 million passengers in the second quarter, with a load factor of 88%, up from 11.5 million a year prior. First-half total revenue per seat sold rose to GBP66.46 from GBP47.61 in the year prior, it said.

The company said it has ramped up capacity throughout the quarter, growing 40% from January to March. The growth will continue into the peak summer season, when it expects to be back to around prepandemic levels of capacity.

“We see continued strong booking momentum into summer as customers prioritize spending on travel and choose airlines like easyJet offering the best value and destination mix, as well as easyJet holidays which is continuing its steep growth trajectory as the fastest growing holidays company in the U.K.,” Chief Executive Johan Lundgren said.

Write to Joe Hoppe at [email protected]

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