British low-cost carrier easyJet has recently announced a 15% capacity growth for Q1. As we move into the 2024 financial year, easyJet has stated that bookings have continued to rise. This announcement comes in conjunction with the London Luton-based carrier placing orders for as many as 257 brand-new Airbus A320nei family jets.
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Record Profits and Revenue Growth
easyJet reported record profits and revenue growth during the busy summer travel season, with higher fares and increased ancillary revenue driving the increase. Passenger numbers have risen by 8% compared to last year, with a 92% seat occupancy rate, indicating strong demand for EasyJet's flights and holidays. The average basic one-way fare in July, August, and September rose 9% from summer 2022 levels from £64 to £69, which is a £5 increase. Ancillary revenue, extra charges passengers can pay such as baggage, assigned seats, and priority boarding, rose £3 from last year to £27.
Expansion Plans
easyJet plans to continue expanding its winter capacity and route network by adding new routes to Finland, Egypt, Iceland, and Switzerland. EasyJet will serve 12 new routes to these countries during this winter season. In Finland, easyJet will launch flights from London Luton and Edinburgh to Rovaniemi, the gateway to Finnish Lapland, on December 9 and 3, respectively.
Looking Ahead
easyJet CEO Johan Lundgren stated: “We have delivered a record summer with strong demand for easyJet’s flights and holidays... This performance has demonstrated that our strategy is achieving results... Our new medium-term targets provide the building blocks to deliver a PBT greater than £1 billion. This will be driven by reducing winter losses, up-gauging our fleet, and growing easyJet holidays. As part of our commitment to shareholder returns, the Board intends to reinstate dividends commencing with the FY23 results.” With these ambitious plans, easyJet is poised for significant growth in the coming months. The increased winter capacity is expected to meet the strong demand for flights during the holiday season. As we move into the winter season, easyJet has stated that capacity and fares are higher than 2022 levels.
