Despite a £126m loss in the first quarter, easyJet remains hopeful and optimistic that 2024 will be their year as many announcements are made this week.
A couple of announcements have been made by the airline this week, consisting of it’s first quarter loss being posted as £126m, as well as the ordering of more than 300 CFM LEAP-1A engines.
The carrier is looking to start 2024 on a better footing, as demand at the carrier continues to pick up.
Without further ado, let’s get into it…
easyJet Posts £126m First Quarter Loss…
easyJet posted a first-quarter loss of £126m loss before tax, which is a slight improvement on 1Q22 where this was recorded at £133m.
Passenger numbers for Q1 in FY24 was recorded at 19.8m, which is an improvement also from 17.4m recorded in 1Q23.
Load factors also rose one percentage point from 86 to 87%.
Johan Lundgren, the CEO of easyJet said the following on the financial results:
“We delivered an improved performance in the quarter which is testament to the strength of demand for
our brand and network.”
“The popularity of easyJet holidays also continues to grow, with 48% more customers in the period.”
“We see positive booking momentum for summer 2024 with travel remaining a priority for consumers.”
“Flight and holidays bookings took off strongly during the traditional busy turn of year sales period, as
customers opted to secure their summer holidays to firm favourites like Spain and Portugal alongside
destinations further afield like Greece and Turkey.”
“easyJet remains focused on delivering for our customers in the coming months, while also expecting to
deliver continuing performance gains”.
Bookings Remain Very Strong: Positive Outlook Ahead?
On the same day the financial results were released, easyJet was keen to note that bookings were very elevated during their Big Orange Sale, where they were filling two aircraft a minute.
Lundgren added to this saying:
“With flights and holidays bookings taking off during this traditionally busy booking period as well as strong booking momentum for summer 2024, we continue to see that the value and importance of holidays for our customers.”
“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, all of which is a which is testament to the strength of demand for our brand and network and we remain focused on delivering for our customers.”
So with this in mind, the carrier is expecting 2024 to be a busy year, and could potentially convert the loss closer to a profit by the end of year.
More Than 300 CFM LEAP-1A Engines Ordered This Week Too…
In what is being seen as the final step of additional infrastructure purchases, the airline also announced that it has ordered over 300 CFM LEAP-1A engines.
This is significant as these engines will power the 157 Airbus A320neo Family aircraft that they have on order, with deliveries due to begin from 2029.
Lundgren said the following on this order:
“We are very pleased to have signed a deal with CFM, following a competitive selection process.”
“This agreement for more than 300 engines will provide important environmental benefits through a significant improvement in fuel efficiency and a reduction in noise as well as enable easyJet to continue to affirm its leading position at Europe’s primary airports.”
“easyJet has a long history working with CFM and look forward to continuing to work in partnership in the years to come”.
Overall: How Will easyJet Look in 2024?
Despite their first quarter loss, which goes to December 31 last year, easyJet remain confident about what performance will look like going into this year.
Traditionally, the airline is at it’s busiest in the Summer season, so all eyes will be on what the performance will look like for that period, as that will set the airline up for the financial year ahead.
Beyond that, through the order of new aircraft, it will be interesting to see how long it takes the carrier to convert it’s loss back into a profit as more growth is established in the years ahead.
But for now, let’s see how easyJet’s 2024 will go.
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