EasyJet aims to more than double profits at easyJet holidays after reporting the tour operator will deliver a £120 million profit “in only its second year of trading”.
Johan Lundgren, easyJet chief executive, hailed a “record financial performance” and “best ever” results for the April-to-June and July-to-September quarters as he issued a trading update last week ahead of full-year results at the end of November.
Lundgren reported easyJet passenger numbers up 8% year on year and revenue up 9% in the three summer months to September – the final quarter of the airline’s financial year – and unveiled “ambitious new targets” including a new fleet plan.
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EasyJet reports record summer as tour operation outperforms forecasts
He revealed easyJet aims to hit an annual profit of £1 billion within three to five years – of which £250 billion is forecast to come from easyJet holidays – up from a forecast pre-tax profit of £440 million to £460 million for the 12 months to September.
Lundgren insisted: “Customers continue to protect their holidays and gravitate towards value.”
He dismissed a suggestion that rival carriers could seek to emulate easyJet holidays’ success, suggesting: “If any low-cost airline knew how to do this, they would have done it. We have a network no other airline has. We have a reputation no other airline has. We have relationships with hoteliers.
“There have been multiple tries by airlines to do this. I don’t know who else could replicate it.”
EasyJet chief financial officer Kenton Jarvis reported easyJet holidays carried 1.9 million package holidaymakers in the 12 months to September. The operator holds an Atol to cover almost 2.3 million holidays in the next 12 months.
The carrier confirmed firm orders for 157 new Airbus aircraft for delivery between 2029 and 2034 last week and purchase rights for a further 100, increasing its order book to 315 aircraft at a cost of almost $20 billion.
Lundgren said capacity for the three months to the end of the year would be 15% up year on year, and 13% higher for the winter as a whole.
He noted: “We’ve not given [capacity] guidance on the full year. The increase will be significant but won’t be 13%-15% [up on 2022-23]. It gives us steady, robust growth. We expect capacity in this financial year to come up to the same level as 2019.”
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EasyJet reports record summer as tour operation outperforms forecasts