Easyjet to post loss for third consecutive year despite strong summer
Easyjet is expected to post a loss for the third consecutive year, despite increasing earnings over the busy summer quarter.
The low-cost carrier said that, for the year ended 30 September, losses are expected to be in the £170m-£190m range as a result of travel disruption experienced over the last few months.
In a trading update published on Thursday, Easyjet reported that £75m from incremental disruption costs while £64m derive from the effect of exchange rates.
Chief executive Johan Lundgren said that the company will break even this year, as it booked between £525m and £545m in quarterly earnings during the summer.
In the three months to September, the airline carried 26.3 million people aboard its plane, operating at 88 per cent of 2019 levels. Load factor, on the other hand, was at 92 per cent.
Despite an uncertain environment, Easyjet said demand for this winter and the coming year was holding up, with early indications for the first quarter of FY23 remaining positive.
“People will gravitate towards value and brands they can trust, which is something we believe is the core pillar in our offer,” Lundgren told journalists.
The carrier also said it would fly 20 million passengers during the less busy winter season.
Easyjet’s performance is in stark contrast with rival Ryanair, which is expected to grow even amidst an economic recession.
The Dublin-based airliner reported that in September it had flown 15.9 million passengers aboard its planes, at a load factor of 94 per cent.
“People in a recession will get much more price sensitive,” chief executive Michael O’Leary told reporters in late August.
“We will see a much larger number of people trading down from British Airways and Easyjet.”