Easyjet more than doubles dividend as profit jumps
Easyjet plans to more than double its full-year dividend after profit jumped nearly a third on strong travel demand and a bumper performance from its holiday business.
The orange-liveried carrier reported a 34 per cent rise in pre-tax profit to £610m in the twelve months to October. Operating profit rose by 25 per cent to £597m, although this was slightly below analyst expectations.
Group revenue increased by 14 per cent to £9.3bn, as Easyjet flew nearly seven million more passengers than the prior year.
Subject to approval, investors can now expect an ordinary dividend of 12.1p per share, up from 4.5p in 2023 and amounting to £92m.
The results come despite concern that Europe’s largest budget airlines may be entering a gloomier period, following a record couple of years since travel demand rebounded from pandemic-era lockdowns.
Shares in the likes of Ryanair and Wizz Air have broadly underwhelmed in 2024 amid supply chain issues and a rise in flight disruption stemming from air traffic control issues and conflict in the Middle East and Ukraine.
Easyjet, which has its base at Luton Airport, has enjoyed more resilience to the troubles thanks to its holiday arm, Easyjet Holidays. Its subsidiary recorded a 56 per cent rise in pre-tax profit to £190m in the 12 months and has plans to grow its customer base by around 25 per cent in 2025.
The airlines’ shares are up around nine per cent this year to date, propped up by soaring demand over the first half of the year, when it booked £960m profit.
Kenton Jarvis, the Easyjet finance boss who is replacing departing chief executive Johan Lundgren, said: “The outlook for Easyjet is positive and travel remains a firm priority with consumers who value our low fares, unrivalled network and friendly service.
“The airline will continue to grow, particularly on popular longer leisure routes like North Africa and the Canaries and we plan to take 25 per cent more customers away on package holidays, as easyJet holidays continues to thrive.”
Lundgren, who will hand over the reins in January, said: “I am pleased to be leaving a strong Easyjet, the future for the company is bright and I look forward to seeing Kenton delivering his ambitious plans, generating positive shareholder returns while making low-cost travel easy for millions of customers.”