EasyJet (LON: EZJ) shares fell over 3% at the start of Tuesday's session after the company posted its full-year results, which revealed narrowing losses, revenue growth, and a positive demand outlook.
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The company reported a headline pre-tax profit of £178 million, essentially in line with the £180 million pre-tax loss expected, while revenue was £5.77 billion, rising 296% compared to last year.
EasyJet shares hit a low of 373.1p in early trading, although it has since regained some of those earlier losses, currently trading around the 387.8p mark, down 1.3%.
EasyJet also said it delivered its best-ever headline EBITDAR in the fourth quarter, coming in at £674 million, driven by its focused network allocation, improved revenue capability, and financial strength, which “provides the platform to deliver strong shareholder returns.”
Commenting on demand, the budget carrier's Chief Executive, Johan Lundgren, said he believes legacy carriers will struggle in the current high-cost environment, but EasyJet will benefit as consumers will protect their holidays but look for value, voting with their wallets.
“Over the next year, we are targeting customer growth and are well placed to drive returns and margins while maintaining a rigorous focus on cost. With one of the strongest balance sheets in European aviation, we are ready to take opportunities as they present themselves,” added Lundgren. “We have a clear strategy to drive returns for our shareholders and have significant confidence in our plan today and that it will deliver going forward.”
For fiscal 2023, EasyJet said fuel prices in the first half are expected to be up more than 50% compared to last year, while it also sees market-wide inflationary pressure. However, H2 early bookings are looking positive, with Easter ticket yields showing strength year-over-year.
