easyJet’s financial performance has resulted in a loss in the first quarter of its 2023-24 financial year. In the three months up to 31st December 2023, the easyJet made a pre-tax loss of 126 million pounds. This loss is however still an improvement on the same time in the previous year. In the three months up to 31st December 2022, easyJet’s financial performance resulted in a loss of 133 million pounds. There is therefore a 5% in easyJet’s financial performance in the first quarter of the 2023-24 financial year when compared to the first quarter of the previous financial year.
easyJet’s Financial Performance
The situation has not been easy for airlines recently. easyJet’s financial performance, like that of many other airlines, was heavily affected by the pandemic. This is because government restrictions meant that demand for flights slumped. To make matters worse even after the pandemic restrictions were lifted, many airlines were unable to take advantage of the surge in demand for flights as there were staff shortages resulting in mass flight delays and cancellations at airports. easyJet was however one of those airlines credited with taking a proactive stance in reducing flight numbers at airports such as London Heathrow, before mandatory restrictions were introduced.
In terms of revenue, easyJet’s financial performance resulted in a figure of 1.8 billion pounds in the three months up to 31st December 2023. This was 22% higher than the 1.474 billion pounds made in the first quarter of the company’s previous year. The improvement in easyJet’s revenue shows that the company is becoming more popular with customers. However, even though revenue is increased by 22%, the reduction in loss before tax was only 5%. The fact that revenue has increased to a greater extent than the reduction in loss when comparing the first quarter of this year to the first quarter of the last year indicates that easyJet’s ability to control costs has reduced.
easyJet’s response
In its report, the company has commented that easyJet’s financial performance has showed a year on year improvement with what it feels is an even stronger underlying performance. It does appear that easyJet had setbacks in October following the onset of conflict in the Middle East with a pause in flights to Israel and Jordan which still remains in place. The setbacks the company has suffered from stem from the fact that there was what it describes as a temporary slowdown in flight bookings in the wider industry resulting from the conflict. However since then, customer demand and bookings have recovered strongly from late November, with customer demand increasing by 48% since the same time last year.
The company’s Chief Executive Officer, Johan Lundgren has commented on easyJet’s financial performance. He has suggested that the company’s performance in general has improved. In addition, he has said that there has been what he describes as a positive momentum for bookings for summer 2024. He concludes by saying that easyJet expects to deliver continuing performance gains in the coming months.
As one can see, easyJet’s financial performance is languishing in the loss zone for the first quarter of its 2023-24 financial year. However, the company has posted a reduced loss when compared to the same time period last year. The company is overall optimistic about easyJet’s future performance. We have to wait to see how this progresses.
