EasyJet cuts losses after surge in demand for flights and holiday packages
Share:
EasyJet cut its losses by more than half in the final quarter due to a surge in demand for flights and holiday packages. The budget carrier reported its pre-tax loss narrowed to £61m in the three months leading up to December 31, a significant improvement from the £126m loss the year before.
Passenger numbers saw an uptick by 7% during the same period. Kenton Jarvis, EasyJet's Chief Executive, said: "Looking to this summer, we have seen continuing demand for easyJet’s flights and holidays where we have one million more customers already booked, with firm favourites like Palma, Faro and Alicante as well as new destinations like Tunisia and Cairo proving popular.
"All of this demonstrates positive progress towards our medium-term target to deliver more than £1 billion of profit before tax.". While winter typically sees airline losses due to reduced flight demand, EasyJet managed to lift seat provisions to 24.1 million, a 5% rise, and flight durations averaged 6% longer.
EasyJet Holidays, the company’s tour operator arm, reportedly enjoyed around a 40% increase in profits for the same spell, as per Mr Jarvis. Looking ahead, customer growth is anticipated to hit 25% for the year ending in September when compared to the previous year.
