London (Business Emerge), July 25: In a remarkable third-quarter performance, EasyJet has reported a substantial 16% increase in year-over-year profits, driven by high summer travel demand. For the three months ending June 30, the airline’s profit before tax soared to £236 million (€280 million), surpassing the £203 million (€241 million) recorded during the same period last year. The company remains optimistic about its fiscal outlook for 2024.
The airline’s revenue for the quarter reached £2.63 billion, marking an 11% rise from the previous year and aligning with expectations. Passenger revenue, which constitutes 61% of the total revenue, saw a 7% increase. Additionally, ancillary revenues—encompassing fees for allocated seating, baggage, and food—grew by 11% and now represent 26% of the company’s total sales. This positive trend underscores the significant contribution of these revenue streams to the company’s overall performance.
EasyJet Holidays, a newer addition to the company’s portfolio, has made impressive strides. Contributing 13% to the group’s revenues, the holidays unit achieved a pre-tax profit of £73 million, up from £49 million the previous year. The segment’s revenue surged by 42%, driven by a 33% increase in passenger numbers. This strong performance has led EasyJet to raise its annual profit forecast for the holidays unit to over £180 million, reflecting a 48% growth.
The rise in passenger numbers and capacity has been noteworthy, with a 1% increase in revenue per seat despite challenges faced by the industry. The load factor has remained steady at 90%, and EasyJet reported selling 1.5 million more seats compared to the peak summer period of the previous year. The airline is on track to approach a full-year capacity of 100 million seats, with 69% of the final quarter already booked.
Following the earnings update, EasyJet’s share price saw a 5.33% increase on Wednesday, reflecting investor confidence in the company’s continued success.