easyJet, the renowned low-cost carrier, has announced its expectation of reporting an increase in headline pretax profit for the fourth quarter of fiscal 2023. Furthermore, the airline revealed its plan to reinstate dividend payments.
Fleet Expansion for Modernization and Growth
In addition to these positive financial projections, easyJet has recently made a significant commitment to enhance its fleet by purchasing an additional 157 Airbus aircraft. The deal also includes the option for the carrier to exercise its purchase rights for another 100 planes.
According to easyJet, this fleet expansion will serve as a catalyst for the airline’s ongoing modernization and growth, extending beyond 2028. It is anticipated that this strategic move will bring substantial operational benefits, cost efficiencies, and sustainability improvements.
Financial Outlook and Performance
For the quarter that ended on September 30, easyJet foresees headline pretax profit ranging between £650 million and £670 million ($800.4 million to $825 million). An essential indicator for the airline, headline pretax profit excludes exceptional and one-off items.
The full-year headline pretax profit is expected to fall within the range of £440 million to £460 million, with a consensus forecast of £463.3 million based on 10 analysts’ predictions. These figures demonstrate a significant recovery for easyJet from the headline pretax loss of £178 million reported in fiscal 2022.
Regarding revenue, easyJet anticipates approximately £3.12 billion in the fourth quarter of fiscal 2023, a substantial increase from the previous year’s £2.52 billion.
Steady Load Factor and Future Capacity
easyJet’s load factor remains steady at 92% for the fourth quarter, demonstrating consistent demand and occupancy levels.
Looking ahead to the first quarter of fiscal 2024, easyJet predicts a 15% year-on-year capacity increase, signaling its confidence in continued growth.