Easyjet is “on track” for a second consecutive record breaking summer, its chief executive has said, as profit and revenue rose on strong travel demand.
The low-cost carrier reported £236m in third quarter pre-tax profit, up 16 per cent year-on-year. Revenue also increased by 11 per cent to £2.6bn, which Easyjet put down to an eight per cent rise in passenger numbers and continued growth at its subsidiary, Easyjet Holidays.
The airline flew 28.1m seats in the three months to July, a seven per cent increase on the same period last year and at a load factor of 90 per cent.
In a statement, chief executive Johan Lundgren said: “Our strong performance in the quarter has been driven by more customers choosing Easyjet for our unrivalled network of destinations and value for money.
“This result was achieved despite Easter falling into March this year, demonstrating the continued importance of travel and this means we remain on track to deliver another record-breaking summer, taking us a step closer to our medium term targets.”
Investors had been waiting with bated breath for the results after an unexpectedly poor update from Ryanair on Monday, in which the Irish carrier warned of “materially lower” ticket fares over the summer and posted a sharp dip in profit.
The announcement sparked a sell-off in a slew of London-listed airline and travel firm stocks., including Easyjet, as investors feared a post-Covid boom in the sector may be coming to an end.
Like other carriers, Easyjet has benefitted from resurgent demand for travel following years of pandemic-era lockdowns. It swung back to profit last year and enjoyed a record summer.
However, investors have generally reacted tepidly to the stock and shares are down over 15 per cent this year to date.
Flight cancellations stemming from the conflict in the Middle East and European air traffic control strikes, coupled with capacity constraints at European airports, have conspired to offset strong bookings.
Looking ahead, Easyjet said bookings for the fourth quarter had continued to build, with 69 per cent now sold. It said around 1.5m more seats were available for the peak of summer, compared to the same point last year.