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(Alliance News) - easyJet PLC on Thursday said revenue surged in the first half of its financial year, boosted by a 25% capacity increase, as its interim loss narrowed.
The Luton Airport-based low-cost airline reported revenue of GBP2.69 billion in the first half to March 31, rising 79% from GBP1.50 billion a year prior.
easyJet said the increase in revenue was predominantly driven by an increase in capacity to 37.9 million seats, up 25% from 30.3 million in the first half of last year, which was just fully emerging from the Covid-19 pandemic, as well as ticket yield strength and its continued change in ancillary revenue generation.
Passenger revenue grew by 78% to GBP1.75 billion from GBP985 million a year prior, while ancillary revenue surged by 83% to GBP930 million from GBP513 million.
Pretax loss was GBP415 million, narrowing from a loss of GBP557 million a year ago. The first half is the airline's seasonally weakest, with losses normally made up for in the second half, which includes the summer season.
easyJet noted an increase in fuel costs to GBP773 million in recent half-year, doubling from GBP362 million a year ago.
Looking ahead, the company said its business transformation is expected to accelerate the delivery of its medium-term targets, which include increasing capacity back to its financial 2019 level of 105 million seats. In financial 2022, easyJet flew 81.5 million seats, up from 28.2 million in financial 2021.
Chief Executive Johan Lundgren said: "easyJet's optimised network combined with the strong demand seen for flights and holidays, enhanced revenue capabilities and operational resilience, means we enter the summer with confidence. Recent research has shown that travel is the number one priority for household discretionary spend with customers safeguarding their holidays and increasingly opting for low cost airlines and brands which provide great value.
"All of this progress should result in the acceleration in the delivery of our medium-term targets while we continue to also capture the opportunities ahead. This includes the addition of a new base in the UK, in Birmingham, which will not only provide more choice and connectivity for consumers but also the creation of hundreds of jobs."
easyJet shares were up 0.8% to 524.40 pence each in London on Thursday morning.
By Harvey Dorset, Alliance News reporter
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