Posted By Global Banking and Finance Review
Posted on January 22, 2025
By Joanna Plucinska and Yadarisa Shabong
(Reuters) -British airline easyJet reported a smaller operating loss in its first quarter on Wednesday on easing fuel costs and strong passenger demand for travel and its holiday packages.
Its operating loss came in at 40 million pounds ($49.27 million) for the three months to Dec. 31, compared with a loss of 117 million pounds a year earlier.
"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," the carrier's new CEO Kenton Jarvis said in a statement.
European airlines are hoping that stable fuel prices and demand will help their performance this year as spiralling costs and geopolitical turmoil weighed on results in 2024. European airline shares are broadly down on the year.
The first quarter of the financial year is usually the weakest for airlines as fewer customers travel between January and March. Airlines make up for lost revenue in the busy spring and summer travel seasons.
Jarvis, who was the airline's finance chief, took over the top role from Johan Lundgren earlier this month with a promise of continuity on executing easyJet's mid-term growth plan, with the airline confirming it was on track to meet its target of one billion pounds profit before tax.
New CFO Jan De Raeymaker also joined easyJet this week from rail freight firm Lineas.
EasyJet said current booking trends were supportive of it meeting market expectations for pretax profit of 709 million pounds in fiscal 2025, according to a company-compiled consensus.
The budget airline had said in November it expects to fly more passengers in its fiscal 2025 and forecasts its lucrative package holiday business to grow about 25% from the previous year.
Stability in the Middle East, including a recent ceasefire deal between Israel and Hamas, could offer a further respite, allowing carriers to relaunch cancelled routes.
EasyJet said earlier this week that it would resume flights to Tel Aviv this summer in June.
($1 = 0.8118 pounds)
(Editing by Rashmi Aich)
