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Holidays Offset Easyjet's First-Quarter Losses
29 Jan
Summary
- Easyjet reported a £93 million loss, an increase of £32 million year-over-year.
- Package holiday customers surged 20 percent, driving significant profit.
- Full-year outlook remains positive with strong summer booking trends.
Easyjet reported a headline loss of £93 million for its first quarter, an increase of £32 million compared to the prior year. This rise in losses is attributed to the airline's strategic investment in expanding its routes to Milan Linate and Rome Fiumicino.
The airline's package holiday division experienced substantial growth, with a 20 percent increase in customers for the three months ending December 31. This popular offering generated £50 million in pre-tax profit and now accounts for approximately 14 percent of Easyjet's total revenue.
Despite the increased quarterly losses, Easyjet reaffirmed its full-year financial projections. The company noted a record January for bookings, with the second half of the year already seeing significant sales for both flights and holidays. Chief executive Kenton Jarvis expressed confidence in building well for the summer season and progressing towards a medium-term profit target of over £1 billion before tax.
