easyJet Projects Third Annual Loss

DALLAS - easyJet (U2) warned of a third consecutive annual loss as sector-wide disruptions and a strong dollar offset countered pandemic recovery.

The British LCC said in an update today that its pre-tax losses for the fiscal year that just concluded are projected to be between £170m and £190m (US$190m and US$210m).

That would, however, be a big improvement after the carrier went deeper into the red due to the COVID fallout in 2020 and 2021. Despite facing an 'uncertain macro-economic environment,' U2 has announced that bookings for the coming winter season and summer of 2023 have been progressing well.

Over 24 million passengers were carried during the period, which covers the airline's peak summer months of July-September. U2 also enjoyed a load factor of some 92%, with solid yields across its network.

U2 Airbus A320 (G-UZHD)> Photo: Alberto Cucini/Airways

Narrowing Losses

The aforementioned annual headline losses include the £75m (US$83.1m) losses in additional disruption costs, which caused many of its flights to be canceled earlier this year. It also covers a £64m (US$70.9m) loss from 'balance sheet revaluations.'

Bosses said that operations have now returned to normal. Indeed, 'on the day' cancellations fell below 2019 levels thanks to 'actions put in place earlier this summer.

easyJet Holidays, which the carrier launched in November 2019, has also seen strong performance, achieving a pre-tax profit of more than £35 million (US$38.8 million).

A new easyJet Holidays livery was applied to an Airbus A320 (G-EZOA). Photo: easyJet Holidays

Moving Forward

U2 now expects to fly around 20 million customers in the first quarter of the 2023 financial year. This is over 30% up year on year for the same travel periods and back to pre-pandemic levels.

Despite the third-year loss outlook, Johan Lundgren, U2 CEO, said, "easyJet achieved a record bounce back this summer... as demand for our leading network and services remains strong."

"easyJet is Europe's largest operator at primary airports with one of the strongest balance sheets in the aviation industry. We face the uncertain macro-economic environment with many strengths through our brand, network, and business model, which enable us to provide low fares to millions despite the rising cost of living."

Featured Image: easyJet Airbus A320 (G-EZGY). Photo: Alberto Cucini/Airways