Top Stories
EasyJet reports weaker annual profit, looks positively towards 2025
Published by Uma Rajagopal
Posted on November 27, 2024
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Uma Rajagopal
Posted on November 27, 2024
By Joanna Plucinska and Yadarisa Shabong
LONDON (Reuters) -EasyJet said on Wednesday that it expects its capacity to increase by 3% in fiscal 2025 after reporting a smaller-than-expected annual operating profit due to disruptions from the ongoing conflict in the Middle East.
European airlines, such as Lufthansa and Air France-KLM, have struggled this year to varying degrees with limited plane deliveries, engine challenges, spiralling labour costs, flattening ticket prices and moderating demand.
The airline reported an operating profit of 597 million pounds ($750.5 million) for the year ended Sept. 30, compared to 625.6 million pounds expected by analysts, according to an LSEG-compiled poll.
However, its reported operating profit is 25% higher than a year earlier. That is a “significant step towards our goal of sustainably generating over one billion pounds ($1.26 billion) annual profit before tax,” said outgoing CEO Johan Lundgren in a statement.
EasyJet has dodged many of the issues that have plagued the sector thanks to its Airbus fleet equipped with CFM engines. It has also avoided the challenges surrounding U.S. plane manufacturer Boeing and engine maker Pratt and Whitney, owned by RTX.
And expectations for the coming year are optimistic, with strong demand set to continue and more interest in easyJet’s lucrative packaged holiday business.
For the current fiscal year ending September 2025, the airline expects capacity of about 103 million seats and holiday customers to grow by about 25% from last year.
The airline will continue to grow, particularly on popular longer leisure routes like North Africa and the Canaries and we plan to take 25% more customers away on package holidays,” CEO-designate Kenton Jarvis, who is replacing Johan Lundgren next year, said in a statement.
($1 = 0.7955 pounds)
($1 = 0.7947 pounds)
(Reporting by Joanna Plucinska in London and Yadarisa Shabong in Bengaluru; Editing by Sonia Cheema and Louise Heavens)
EasyJet reports weaker annual profit, looks positively towards 2025
By Joanna Plucinska and Yadarisa Shabong
LONDON (Reuters) -EasyJet said on Wednesday that it expects its capacity to increase by 3% in fiscal 2025 after reporting a smaller-than-expected annual operating profit due to disruptions from the ongoing conflict in the Middle East.
European airlines, such as Lufthansa and Air France-KLM, have struggled this year to varying degrees with limited plane deliveries, engine challenges, spiralling labour costs, flattening ticket prices and moderating demand.
The airline reported an operating profit of 597 million pounds ($750.5 million) for the year ended Sept. 30, compared to 625.6 million pounds expected by analysts, according to an LSEG-compiled poll.
However, its reported operating profit is 25% higher than a year earlier. That is a “significant step towards our goal of sustainably generating over one billion pounds ($1.26 billion) annual profit before tax,” said outgoing CEO Johan Lundgren in a statement.
EasyJet has dodged many of the issues that have plagued the sector thanks to its Airbus fleet equipped with CFM engines. It has also avoided the challenges surrounding U.S. plane manufacturer Boeing and engine maker Pratt and Whitney, owned by RTX.
And expectations for the coming year are optimistic, with strong demand set to continue and more interest in easyJet’s lucrative packaged holiday business.
For the current fiscal year ending September 2025, the airline expects capacity of about 103 million seats and holiday customers to grow by about 25% from last year.
“The airline will continue to grow, particularly on popular longer leisure routes like North Africa and the Canaries and we plan to take 25% more customers away on package holidays,” CEO-designate Kenton Jarvis, who is replacing Johan Lundgren next year, said in a statement.
($1 = 0.7955 pounds)
($1 = 0.7947 pounds)
(Reporting by Joanna Plucinska in London and Yadarisa Shabong in Bengaluru; Editing by Sonia Cheema and Louise Heavens)