EasyJet (LON: EZJ) shares surged 10% Wednesday after it said it sees profit ahead of expectations for FY23.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The low-cost airline explained that while it is mindful of the uncertain macroeconomic outlook, its optimism for its full-year profit beat is based on current high demand levels and strong bookings.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The results pushed easyJet and other airline stocks higher, with IAG up over 2%, and Wizz Air, who will post an update tomorrow, trading 6% above Tuesday's close.
EasyJet reported a first-quarter headline loss before tax of £133 million, narrowing from the £213 million loss in Q1 2022 when Covid travel restrictions were still in play.
The airline said strong bookings have improved its first quarter performance by £80 million year on year, with its airline and easyJet holidays segments delivering record revenue booking days in January.
Its first quarter financial performance was ahead of expectations, with revenue per seat increasing 36% year on year. Group revenue came in at £1.47 billion.
In the first quarter, EasyJet flew 20.2 million seats with a load factor of 87%, in line with guidance, but a rise compared to the same period last year when it flew 15.5 million seats with a load factor of 77%.
Passenger numbers in the quarter increased to 17.5 million.
EasyJet expects its FY23 profit before tax to be £126 million.
“This strong booking performance, aided by the airline's step changed revenue capability, has driven an £80m year-on-year boost in the first quarter with continued momentum as customers prioritise spending on holidays for the year ahead. easyJet holidays, the fastest growing holidays company in the UK, is upgrading its ambitious growth plans for the year given the strong demand,” stated Johan Lundgren, EasyJet CEO.
“In summary, we expect to see our winter loss reduce significantly over the first half compared to last year. This will set us firmly on the path to delivering a full-year profit.”
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.