EasyJet has reduced its winter losses by more than £50 million year-on-year, despite rising fuel costs and the conflict in the Middle East.
The budget carrier also said “demand for our flights and holidays continues to build well for summer” in a trading update for the six months to March 31.
Its update reported: “EasyJet has reduced its first half ‘seasonal’ losses, with headline loss before tax expected to be between £340 and £360 million.
“This improvement was driven by targeted capacity growth where demand was strongest, alongside productivity and utilisation benefits which enabled ex-fuel unit costs to remain flat year-on-year,” said the airline.
Seasonal demand for air travel means airlines often record losses in the winter and profits in the summer.
The update added: “We continue to drive growth at easyJet holidays, with £31 million of profit before tax (+206% compared to H1’23) and 42% customer growth year-on-year.”
EasyJet said the results were achieved despite “headwinds” from rising fuel costs and the conflict in the Middle East which resulted in a direct impact of about £40 million in the first half.
Flying into Israel has now been suspended for the summer with this limited capacity – about 0.3% of planned summer flying – being redeployed across the network.
Bookings for summer 2024 continue to build well, said the update, with an increase in volume and pricing compared to the same period last year, underpinned by “strong demand”.
EasyJet holidays has currently sold 70% of the plan for this summer.
Johan Lundgren, chief executive of easyJet, said: “The importance that consumers place on travel coupled with easyJet’s trusted brand has driven good demand for our flights and holidays.
“Our growth and focus on productivity have reduced winter losses by more than £50 million.
“We have further enhanced our network with the launch of new bases in Alicante and Birmingham providing greater choice for consumers across Europe.
“We are well set up operationally for this summer season where we expect easyJet to be one of the fastest growing major airlines in Europe and take more customers on easyJet holidays than ever before.”