Easyjet has reported a record second-half of profit this morning as consumers prioritised holiday spending over the key summer trading period.
The company reported headline profit before tax of £445m for the twelve months ending 30 September, a £633m year-on-year improvement.
Off the back of these results, the company confirmed it was bringing back its dividend. Easyjet has committed to a 4.5p per share dividend “in early 2024.” The group also said today it plans to pay out 20 per of headline profit before tax in its 2024 financial year.
Looking ahead, Easyjet said it remains on track to deliver “disciplined” capacity growth of nine per cent in fiscal 2024, with the number of seats flown rising to 101m for the full year.
Johan Lundgren, easyJet’s chief said: “Our record summer performance demonstrates the success of our strategy and that demand for easyJet remains strong as customers choose us for our network and value.
“We see a positive outlook for this year with airline and holidays bookings both ahead year on year and recent consumer research highlights that around three-quarters of Britons plan to spend more on their holidays versus last year with travel continuing to be the top priority for household discretionary spending.”
Easyjet shares ride travel boom
Easyjet has cashed in on record demand this year, as pent-up desire for holidays following years of lockdown restrictions saw global travel boom.
Shares are up over 20 per cent in the year to date. In the three months to September, the company generated a record £640m to £660m, bolstered by strong passenger growth and higher ticket fares.
The low-cost carrier posted a bullish trading update in October, reinstating its dividend and announcing a significant new aircraft order.
Boss Johan is eyeing up £1bn in profit by 2029, yet analysts have shown some scepticism.
Global oil prices, which spiked on renewed conflict in the Middle East, and ongoing air traffic control disruption at its primary hub Gatwick and across Europe, pose a significant threat to the near-term share price.
Easyjet’s monster Airbus aircraft order and £1bn profit target in October received a cautious response from investors, with shares falling over five per cent on the day.
Shares in the airline added three per cent in early deals after the figures were published today.