EasyJet Soars: Profits Rise Amid Budget Travel Boom

Britain's easyJet has raised its annual forecast for its holidays division after posting a 16% increase in third-quarter group pretax profit. The low-cost carrier achieved a profit of 236 million pounds for the three months ending June 30, aided by strong summer travel. CEO Johan Lundgren highlighted the company's progress towards medium-term targets.

Britain's easyJet has revised its annual forecast for its holidays division upward, following a remarkable 16% increase in third-quarter group pretax profit, driven by strong summer travel and a surge in budget trip bookings.

The low-cost airline reported a headline pretax profit of 236 million pounds ($304.3 million) for the three months ending June 30, compared to 203 million pounds recorded a year earlier. CEO Johan Lundgren, who is set to depart next year, stated, "We remain on track to deliver another record-breaking summer, taking us a step closer to our medium-term targets."

Despite the positive outlook for fiscal 2024, no specific profit forecast was provided. The post-pandemic boost in air travel has stabilized as travelers express concerns over rising fares, as noted by airline executives at the Farnborough Airshow. Ryanair's profit slump and warnings about declining ticket prices added to industry concerns.

EasyJet's revenue per seat increased by 1% for the quarter, a trend anticipated to continue into the fourth quarter. Consequently, the airline raised its profit forecast for easyJet holidays to over 180 million pounds from a previous expectation of 170 million pounds. EasyJet holidays, launched in 2019, represented more than a quarter of the group's pretax profit last year due to its attractive travel packages.

Despite Ryanair's grim warning causing unease in the European airline industry, easyJet reported that bookings for the fourth quarter are building steadily, with 69% already sold.

(With inputs from agencies.)