Britains’ low-cost airline, easyJet, announced on Wednesday that it had seen a surge in third-quarter profit, thanks to heightened summer travel and increased demand for affordable trips. The firm reported a 16% rise in its group’s pre-tax profit, marking £236m for the three months ending 30th June, up from £203m the previous year.
“Substantial progress has been made towards our mid-term goals. We are expecting another record summer,” stated CEO Johan Lundgren, who is due to leave his post next year. The carrier did not specify a profit forecast but gave a positive outlook for its fiscal year 2024.
However, as summer travel peaks, the airline industry has started to experience setbacks due to higher fares. After Ryanair reported a downturn in profit and cautioned that ticket prices are continually worsening, a sense of unease has spread across the sector.
Despite these market fluctuations, easyJet reported a 1% increase in airline revenue per seat for the third quarter and expects this trend to persist into the final quarter of the year.
In better news, the airlines’ holiday division easyJet holidays, launched in 2019 and contributing to over a quarter of the group’s pre-tax profit last year, has had its profit projection uplifted. It’s now expected to bring in over £180m this fiscal year, up from the initially predicted £170m.
Despite the sector’s challenges, holiday travellers continue to opt for destinations worldwide, pressuring airlines to decrease their fares to ensure full flights. easyJet reported that bookings for the final quarter are on the upswing, with 69% of seats already sold.