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EasyJet is on track to report record annual profits, as the low-cost airline forecast another strong summer, with travellers brushing off economic fears to book holidays.
The carrier on Thursday said bookings for the peak summer season were “supportive” of it achieving pre-tax profits of £703mn in the 12 months to the end of September, in line with market expectations. That result would beat its previous record of £686mn in 2015.
“We continue to see strong demand for easyJet’s flights and holidays,” easyJet’s chief executive Kenton Jarvis said.
EasyJet is the latest European airline to reassure investors that demand for flying this summer is strong, despite concerns that US trade policy could unleash economic disruption and weigh on consumer confidence.
This week Ryanair, the region’s largest low-cost airline, reported “robust” demand for travel this summer and said that the outlook was “strong”. Meanwhile, British Airways owner IAG said earlier this month that appetite for travel remained healthy despite macroeconomic uncertainty, though it warned of “some recent softness” in economy tickets bought by holidaymakers in the US.
EasyJet has sold about 80 per cent of its seats for the current quarter, and 42 per cent for the following three months, slightly ahead of its position last year.
Jarvis said the airline was “focused on delivering another record summer”, having reported its highest-ever summer results in both 2023 and 2024.
Winters are typically more challenging for European airlines, and easyJet on Thursday reported a £394mn pre-tax loss in half-year results, 13 per cent wider year on year.
The March quarter was “seasonally challenging” because of the late Easter which fell in April, while the airline was also forced to discount fares on some new routes, easyJet said.
“We anticipate route maturity in the upcoming winter and beyond to further improve these winter losses,” the airline added.
Shares fell 2 per cent on Thursday, but have risen 15 per cent over the past month as investors have welcomed signs that the economic uncertainty has not hit summer bookings.
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