EasyJet summer bookings gain, sees lower first-half loss

EasyJet Plc said summer bookings are “building well,” with passenger revenue into the busiest travel period “well ahead” of last year, suggesting that travel demand for holidays remains undiminished.

The discount carrier said its fiscal first-half winter loss will be lower, even after the company booked a £40 million impact from suspending flights to Israel. Costs per seat will remain unchanged, while fuel costs will rise about 7% in the period, the company said in a trading update. 

“We see positive booking momentum for summer 2024 with travel remaining a priority for consumers,” Chief Executive Officer Johan Lundgren said in the statement.

In the fiscal first quarter ended Dec. 31, revenue rose 22% to £1.8 billion, with a pretax loss of £126 million, a slight improvement from the same period last year. EasyJet said revenue per seat would improve by mid-single digits in the second quarter.

EasyJet rose as much as 5.1%, or 26 pence, to 534.2 pence, the best performer on the FTSE 250 Index. 

While EasyJet increases its fleet size, rival Wizz Air Holdings Plc faces plane groundings this year because of Pratt & Whitney engine issues in its Airbus narrowbody aircraft which require inspections. In addition, Ryanair Holdings Plc has experienced delivery delays of its Boeing Co. Max planes. EasyJet sources its engines from CFM, the joint venture of General Electric Co. and Safran SA, and the company said it has placed an order with the manufacturer for its latest batch of aircraft.

Lundgren said on a media call that EasyJet isn’t expecting to face any supply-chain issues this year and plans to get 16 aircraft delivered earlier than expected.

“Clearly there’s a challenge across the wider sector,” he said.

EasyJet was the first of the major low-cost European carriers to provide an update on its business this year. Wizz is set to follow with third-quarter results on Thursday while Ryanair earnings are due next week.