easyJet posts pre-tax profit of £455 million for FY2023

easyJet achieved a record performance during summer 2023, despite high fuel costs and the challenges arising from the external operational environment, thanks to initiatives implemented over the past year and a half. Supported by strong consumer demand, the company’s success is driven by the low-risk expansion at primary airports, significant increases in ancillary revenue, market beating growth for easyJet holidays and a constant focus on cost. This led to a pre-tax headline profit of £455 million for the 2023 financial year, an improvement of £633 million year-on-year. Total revenue increased by 42% to £8,171 million (2022: £5,769 million) predominantly due to pricing strength, increased flown capacity, improved load factors and the continued growth of easyJet holidays.

easyJet has ambitious and credible medium-term targets, that provide the building blocks to achieve a Group profit before tax (PBT) per seat of between £7 to £10. The levers to achieving this are: reducing winter losses, growing easyJet holidays to deliver over £250 million of PBT and the cost savings that its current Airbus order book will deliver from fleet efficiency and up-gauging. In addition to the delivery of its strategy, these targets are integral to achieving easyJet’s ambition to deliver more than £1 billion PBT.

easyJet has an existing order book with Airbus to FY29 for a further 158 A320neo-family aircraft still to be delivered. Alongside this, as announced on October 12, 2023, easyJet has entered into conditional arrangements with Airbus to secure the delivery of a further 157 aircraft (56 A320neos and 101 A321neos) between FY29 – FY34 as well as 100 purchase rights (the proposed purchase). This provides easyJet with the ability to complete its fleet replacement programme of A319 aircraft and replace approximately half of the A320ceo aircraft as well as providing the foundation for disciplined growth. The company is in exclusive negotiations with CFM for the supply of engines for the proposed purchase.

easyJet has also agreed to exercise conversion rights within its current order book to convert 35 A320neo deliveries into A321neo aircraft (the conversion). This alongside the proposed purchase will deliver lower fuel burn, CO₂ emissions and operating costs per seat.