EasyJet managed to reduce its losses in the last three months of 2023 despite flight suspensions in the Middle East.
EasyJet share prices soared by more than 2.7% on Wednesday afternoon after the British low-cost airline reported a decrease in losses during the last quarter of 2023.
This was despite £40 million (€47 million) worth of damage impact linked to the conflict between Hamas and Israel.
According to the company’s latest earnings report, losses were incurred because of the suspension of flights to Israel and Jordan, coupled with reduced demand for trips to Egypt.
Meanwhile, EasyJet registered a 14% jump in its overall passenger numbers in the last three months of 2023 and its holiday branch recorded a big profit growth of £30 million (€35 million), up from £13 million, balancing out the losses of the group.
Easyjet’s overall revenues were up by 22% and its pre-tax loss was £126 million (€147 million), showing a slight improvement from £133 million (€156 million) in the same period in 2022.
“We see positive booking momentum for summer 2024, with travel remaining a priority for consumers,” chief executive officer Johan Lundgren said in the statement.
“The popularity of easyJet holidays also continues to grow, with 48% more customers in our first quarter of the year and an expected increase of more than 35% this financial year.”
EasyJet also announced that it has commissioned the world’s largest commercial aircraft engine manufacturer, CFM, to create the engines powering 157 new Airbus aircraft, scheduled to be delivered between 2029 and 2034.
More low-cost European carriers are soon expected to report on their business’s performance, with Wizz Air scheduled to release third-quarter results on Thursday, and Ryanair earnings expected next week.