In a Q3 trading update on July 20, easyJet revealed plans to secure additional firm order positions for its longer-term fleet plan. Further aiming to replace older aircraft and fuel future growth.
The airline’s previous order of 56 A320neo family aircraft was placed during last year’s Farnborough Airshow. It has brought its backlog to 163 aircraft scheduled for delivery through 2028.
easyJet Aircraft Order
easyJet’s Q3 results reflect a significant improvement in financial performance compared to last year’s period.
With a pre-tax headline profit of £203 million for Q3 (April to June), easyJet saw a substantial turnaround from a loss of £-114 million in the corresponding period last year. Group headline EBITDAR also surged, reaching £372 million, up from £103 million.
During the quarter, easyJet witnessed a remarkable increase in revenues, with total revenue reaching £2.360 billion compared to £1.755 billion the previous year.
Passenger and ancillary revenues grew by 30 percent (£1.501 billion) and 28 percent (£622 million), respectively. The airline served 23.5 million passengers with a load factor of 90 percent.
One of the significant contributors to easyJet’s revenue boost was easyJet Holidays. This reported a staggering £237 million in revenue, marking a remarkable 104 percent year-on-year growth. The business unit is on track to achieve a headline profit before tax of £100 million.
Promising Future Prospects
Based on current booking trends, easyJet projects another record pre-tax profit performance for Q4, with revenue per seat (RPS) expected to increase by around 10 percent year on year. The airline also foresees stable year-on-year headline costs per seat, excluding fuel, for the second half of 2023 (H2’23).
Looking ahead, for Q1 of FY24 (starting October 1), easyJet anticipates a 15 percent year-on-year increase in capacity. Furthermore, the airline expects yields and load factors to show positive growth year on year, with headline costs (excluding fuel) remaining relatively flat.
easyJet’s path to profitability is on track, despite the challenges posed by unprecedented air traffic control disruptions and increased strike days. The management has taken measures to mitigate the impact of these issues on customers.
In conclusion, easyJet’s strategic move to expand its Airbus A320neo family fleet and its strong Q3 financial performance signal promising prospects for the airline’s future growth and stability.
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