No-frills airline EasyJet has achieved impressive financial results for the year ending September 30. The company reported a 9% increase in headline pre-tax profits, reaching £665 million, compared to £610 million the previous year. This figure exceeds analysts’ expectations of £650 million.
Growth in Package Holidays
EasyJet’s holiday sector was a key factor in this growth. Annual earnings from the holidays division surged by 32%, amounting to £250 million. This outstanding performance led EasyJet to raise its earnings target for the holidays business to £450 million by 2029-30.
Challenges in Airline Operations
Despite the successes in its holidays segment, the airline portion of EasyJet reported a slight decline in profits. The airline achieved headline profits of £415 million, a decrease from £420 million the previous year. EasyJet acknowledged that improving airline performance has proven to be more challenging, especially during the winter months.
- Profit before tax: £665 million (up 9%)
- Holidays earnings: £250 million (up 32%)
- Airline profits: £415 million (down from £420 million)
- Customer numbers for holidays: 3.1 million (up 20%)
- Expected growth in holidays customers: 15% in the upcoming year
The airline’s operational difficulties stemmed from several factors. These include route maturity, geopolitical influences, and an increasingly competitive environment in certain markets. Consequently, EasyJet adjusted its seat capacity growth projection for the upcoming year to around 7%, down from the previous estimate of 9%.
Future Outlook
Looking ahead, EasyJet is optimistic about its holiday business and overall strategies. Chief Executive Kenton Jarvis expressed confidence in achieving a medium-term profit goal of over £1 billion. The company anticipates a rise in average holiday prices by “high single digits” and a continued increase in customer numbers.
Jarvis emphasized the progress made since setting these targets in 2023, noting a 46% improvement in profit before tax. With strategic initiatives in place, EasyJet is well-positioned to harness future opportunities in the travel market.
