Easyjet hopes for further profit boost as summer holiday bookings lift sector
Easyjet is anticipating higher profit when it reports its half year results on Thursday, as the airline looks to benefit from the return of summer holiday bookings and higher ticket prices.
The low cost carrier said that it expects to exceed full year profit expectations of £260m, with half year losses forecast to shrink to £400m.
Group revenue is predicted to hit £2.69bn, but costs will remain high at £3.1bn as high fuel prices continue to bite.
In its quarterly results this month, British Airways owner IAG reported its first quarter of profit since Covid-19.
Easyjet’s last quarterly results saw its share price jump to its highest level since June, after it raised its full year profit guidance. The group reported a 35 per cent rise in passengers in the first quarter, and a 43 per cent rise in revenue per seat.
“The important figure will be forward bookings,” Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. “IAG said about 80 per cent of its available summer capacity had been sold and we’re cautiously optimistic that Easyjet will at least match this.”
She added: “The other number to watch for is the so-called load-factor. This essentially tells you how full planes are, on average. A higher load factor has enormous benefits for profits.”
Easyjet’s load factor in the previous quarter was 88 per cent, with an expectation that this increases to 90 per cent in the second half of the year.