EasyJet on an upward climb

TOP SUMMER LIFTS AIRLINE’S HOPES

BUDGET airline easyJet has insisted cash-strapped Brits will not ditch their overseas holidays in the face of soaring costs as it posted sharply narrowed annual losses after a record summer performance.

The group reported underlying pre-tax losses of £178million for the 12 months to September 30 against losses of £1.1billion the previous year.

EasyJet said it notched up its best earnings for a single quarter over the summer, at £674m on an underlying basis, as the ending of pandemic travel restrictions put overseas holidays firmly back on the agenda.

Chief executive Johan Lundgren said consumers will prioritise holidays, adding that bookings for spring and summer looked positive. But the firm cautioned over “market-wide” cost increases and said its first-half fuel expense was set to be more than 50% higher year-on-year.

The group’s costs, excluding fuel, rose 106% over the past year to £4.6bn.

It is hiking ticket prices in response but hopes its budget offering will help it weather the cost-of-living crisis.

Mr Lundgren said: “EasyJet does well in tough times. Legacy carriers will struggle in this high-cost environment.

“Consumers will protect their holidays but look for value, and easyJet will be the beneficiary as customers vote with their wallets.”

EasyJet faced £78m in disruption and compensation costs caused by chaos in summer as flights were delayed and cancelled due to airport staff shortages.

This masked a record-breaking final quarter, with its flight programme back to around pre-Covid levels.