EasyJet trimmed traditional winter half-year losses with in-house tour operator easyJet holidays contributing 210% year-on-year profit growth.
The tour arm saw its pre-tax profits for the six months rise to £31 million from £10 million in the same period a year earlier.
This came as easyJet holidays increased carryings by 42% from 592,000 to 838,000 with an improved average selling price per passenger.
More: EasyJet chief Johan Lundgren to step down
EasyJet confirms 10th UK base at Southend airport
Overall EasyJet passenger numbers rose by 11% from 33.1 million to 36.7 million as capacity rose by 12% to 42.3 million seats.
Total winter losses were cut by £61 million year-on-year to £350 million based on revenue of £3.2 billion.
Announcing a return to Southend airport with three aircraft as its 10th UK base for 2025, the airline projected easyJet holidays’ profit growth of 40% to £170 million in the current financial year.
This will help the low cost airline deliver an “ambitious” medium term pre-tax profit target of up to £1 billion.
The holidays business is expecting customer growth of 35% this financial year, taking its UK market share from 5% to 7%.
“This growth is being delivered through strong customer satisfaction of 85%, with 80% of customers likely to re-book,” the carrier said.
“As the holidays business grows in scale, targeted investments will be made to strengthen the customer base.
“Future initiatives are underway to optimise pricing, such as the unbundling of hold bags targeted at the city proposition, alongside enhancing the product offering through room options and further ancillary products.
“Our multi-currency technology platform enables easy and rapid expansion into other source markets, as demonstrated through the launch of our Swiss, French and German markets.”
The airline reported the successful introduction of new bases at Birmingham and Alicante and has 59 million seats on sale for the summer half year period to give en expected total annual capacity of 100 million seats.
Outgoing EasyJet chief executive Johan Lundgren said: “EasyJet’s targeted growth and focus on productivity has delivered a reduction in winter losses, boosted by our trusted brand and network that we continue to invest in.
“Our two newest bases, Alicante and Birmingham, are achieving passenger numbers well above the network average and we have announced a tenth UK base at London Southend from next March, continuing the growth of our leisure network in the UK where easyJet holidays plays an increasingly important role.
“We are now absolutely focused on another record summer which is expected to deliver strong FY24 earnings growth and are on track to achieve our medium term targets.”