easyJet’s financial performance has resulted in a profit in the three months up to June 30 2023. This is an improvement from the loss-making first quarter, where the airline lost 133 million pounds, and the loss-making 6 months up to March 31, 2023, where the airline accrued a loss of 415 million pounds.
However, the situation for easyJet has been difficult. Like many airlines, easyJet’s financial performance was greatly affected by the Covid pandemic. During the pandemic, restrictions from governments worldwide meant that demand for flights in general slumped, resulting in heavy losses for airlines. To make matters worse, when pandemic restrictions were lifted, there was a surge in flight demand. As many staff had been laid off during the pandemic when demand was less, mass staff shortages resulted in high congestion at airports. As a result, airports, such as London’s Heathrow, compelled airlines to curb their number of flights. easyJet was one of those airlines that proactively took this approach before airlines were told to do so by airports. The war in Ukraine was also an issue, particularly for European airlines such as easyJet due to flight diversions due to airspace bans and rising fuel prices due to sanctions on Russian oil.
easyJet’s Financial Performance
Regarding easyJet’s financial performance, the airline made a pre-tax profit of 203 million pounds in the three months up to June 30, 2023. This is an improvement on the loss-making quarter at the same time in the previous year. In the three months up to June 30th, 2022, easyJet’s financial performance resulted in a loss of 114 million pounds. The fact that easyJet is in the profit zone is good news, particularly as the improvement in profit is so pronounced.
In terms of easyJet’s revenue (total money received), the company made a figure of 1.501 billion pounds in the three months up to June 30, 2023. This is an improvement of 30% on the revenue earned in the three months up to June 30 2022, which was 1.152 billion pounds. This is a good improvement in revenue and shows that the company is attracting more customers. As one can see, however, the progress from a multi-million-pound loss to a multi-million-pound profit is very significant compared to the improvement in revenue. This shows that easyJet’s financial performance has resulted in a greater ability to control costs.
The Company’s Response
In terms of the company’s response, the company’s Chief Executive Officer, Johan Lundgren, has commented that the company’s performance has been underpinned by strong passenger demand for easyJet’s network and services. He has said that the company provides great value to customers, with half of fares still under £50. He adds that they are focused on talking about the challenging external environment. He also predicts that easyJet’s financial performance will be at another record level in the fourth quarter. The company will also be adding 15% extra capacity this coming winter.
As one can see, easyJet’s financial performance is in the profit zone for this quarter. This is good news for the company and is a significant improvement on the more recent quarterly and half-year performance this year and the same period last year. The company has a positive outlook for the fourth quarter and continues to expand. We have to wait to see how this progresses.