"EasyJet reports \u2018record summer bounceback\u2019 as annual losses are cut"

" EasyJet reports \u2018record summer bounceback\u2019 as annual losses are cut \r\n\r\nEasyJet cut losses in the year to September 30 with a \u201crecord summer bounceback\u201d despite incurring flight disruption costs of \u00a378 million.\r\n\r\nThe UK budget carrier reported a pre-tax loss of \u00a3178 million, down from more than \u00a31.1 billion in the previous 12 months.\r\n\r\nEasyJet holidays \u201cperformed strongly\u201d with this summer being its first season of trading relatively unaffected by Covid-19 under its revised operating model.\r\n\r\nThe in-house tour operation contributed incremental revenue of \u00a3368 million against \u00a334 million in 2021 from 1.1 million customers, delivering \u00a338 million of headline profit before tax compared with a loss of \u00a312 million in the previous 12 months.\r\n\r\nThe group\u2019s improved performance camei despite what the airline described as \u201cmultiple headwinds\u201d throughout the 2022 financial year.\r\n\r\nThese were detailed as the Omicron variant of Covid-19, the impact of Russia\u2019s invasion of Ukraine and operational challenges as demand \u201creturned at scale\u201d following the widespread removal of travel restrictions across Europe. Incremental disruption costs of \u00a378 million were incurred.\r\n\r\nEasyjet passenger carryings rose by 242% to almost 70 million with revenue up from \u00a31.4 billion to more than \u00a35.7 billion.\r\n\r\nThe recovery \u201cwas driven by increased capacity and yields as customer confidence to travel returned once Covid-19 related restrictions were lifted across Europe, along with enhanced contribution from our ancillary product offering and easyJet holidays,\u201d the airline said.\r\n\r\nHowever, capacity for the year was at 78% of pre-pandemic 2019 levels.\r\n\r\nEasyJet is continuing to allocate aircraft to the markets where demand is strongest enabled by slot growth at primary airports such Gatwick, Porto, Lisbon and the Greek islands.\r\n\r\nLooking forward, the carrier said: \u201cFor winter, which is typically a loss-making period, easyJet is investing in building additional resilience. \r\n\r\n \u201cThis investment allows for summer \u201923 preparations to start earlier in response to the tight labour market, where we have already begun our seasonal recruitment campaign. \r\n\r\n \u201cAlongside this, we now have a dedicated team in place to process employment reference checks as efficiently as possible. EasyJet, like all airlines, is seeing cost pressures including fuel, strengthened US dollar and wage inflation. \r\n\r\n \u201cPeak holiday weeks this winter, such as October half term and Christmas week in the UK, are back to normal levels of volume. Through these key periods, ticket yields are showing strength on the prior year, with the Christmas period\u2019s ticket yield currently up 18%. \r\n\r\n \u201cVisibility over bookings in the second half remains low, however Easter booked ticket yields are strong and booked load factors for Easter are ahead of the prior year.\u201d \r\n\r\nThe carrier insisted it was going into the 2023 financial year \u201cwith one of the strongest balance sheets in European aviation\u201d.\r\n\r\nEasyJet added: \u201cThis financial strength, combined with our leading low-cost proposition at primary airports provides a key differentiator for customers, making it easy for customers to switch towards value.\r\n\r\n\u201cEasyJet\u2019s historic performance in a challenging economic environment where the consumer was squeezed has been strong, as evidenced in 2008\/09 during the global financial crisis when easyJet delivered increased margins as well as capacity growth.\u201d\r\n\r\nChief executive Johan Lundgren said: \u201cEasyJet has achieved a record bounce back this summer with a performance which underlines that our transformation is delivering.\r\n\r\n \u201cThe summer saw easyJet achieve its highest ever earnings for a single quarter with headline ebitdar [earnings] of \u00a3674 million, ancillaries up by 59% on full year 2019 and easyJet holidays well on its way to its \u00a3100 million target. \r\n\r\n \u201cEasyJet does well in tough times. Legacy carriers will struggle in this high-cost environment. Consumers will protect their holidays but look for value and across its primary airport network, easyJet will be the beneficiary as customers vote with their wallets. \r\n\r\n \u201cOver the next year, we are targeting customer growth and are well placed to drive returns and margins while maintaining a rigorous focus on cost. With one of the strongest balance sheets in European aviation, we are ready to take opportunities as they present themselves. \r\n\r\n \u201cWe have a clear strategy to drive returns for our shareholders and have significant confidence in our plan today and that it will deliver going forward.\u201d "

"EasyJet reports \u2018record summer bounceback\u2019 as annual losses are cut"

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