Easyjet writes deeper red numbers: winter loss increased again!

Easyjet writes deeper red numbers: winter loss increased again!

Easyjet posted an adjusted pre-tax loss of 394 million pounds (466.49 million euros) in the first half of the financial year (October to March), an increase of 13 percent compared to the previous year. Total pre-tax loss excluding exceptional items was £401m, an increase of £54m compared to £347m in the same period last year. This comes from the report by oe24 out.

The airline carried around 39.5 million passengers during this period, an increase of 8 percent compared to the previous year. Sales rose 8 percent to a total of £3.53 billion, although growth fell short of expectations. Analysts had expected revenue of £3.62 billion, while passenger revenue rose 5 percent and ancillary revenue rose 7 percent. Despite this increase, total costs rose by 9 percent, partly due to higher fuel costs, which placed a heavy burden on the airline.

Future developments and strategic goals

Easyjet CEO Kenton Jarvis expressed optimism about the company's future development. He sees the company on track to achieve an adjusted pre-tax profit of around £700 million for the full financial year to the end of September. To achieve this goal, Easyjet plans to expand the number of seats available by three percent and offer more flights on longer routes. In the summer half of the year, however, the expansion is expected to be less than in the winter, despite 80 percent of the seats for the current quarter having already been sold.

For the summer quarter up to the end of September, 42 percent of seats have currently been sold, with the crucial booking weeks still to come. This need to adapt its capacities is part of the strategic realignment that Easyjet considers necessary to remain competitive in the market.

Market development and industry outlook

In the broader context of the aviation industry, a report by Lufthansa Group that overall global passenger traffic increased 10 percent in 2024, with European airlines recording a 9 percent increase. Despite this positive news, the airline industry's net profit is forecast to decline to $32 billion. This highlights the ongoing challenges facing the industry, particularly in terms of rising operating costs and intense competition.

Overall, Easyjet faces the challenge of facing a complex market environment while pursuing its strategic goals. The upcoming summer months could be crucial for the airline's financial health.