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(Alliance News) - easyJet PLC on Thursday said it intends to recommence dividend payments after a three-year hiatus, as it hailed a "record summer" for its flights and holiday packages and a swing back to annual profit.
easyJet shares were down 4.1% at 418.70 pence early on Thursday in London. However, the stock remains up 47% over the past 12 months.
In a trading update for the financial year that ended September 30, the Luton Airport-based budget airline didn't comment on the fire in a car park at the airport north of London that resulted in hundreds of cancelled flights on Tuesday and Wednesday.
It said headline pretax profit for the recent year will be between GBP440 million and GBP460 million. This would be a swing from a loss of GBP178 million in financial 2022 and a loss of GBP208 million in financial 2021 in the wake of the Covid-19 pandemic.
The annual result is thanks to headline profit of GBP650 million to GBP670 million in the fourth quarter of the recent financial year and profit of GBP850 million to GBP870 million in the second half as a whole.
Looking ahead to the first quarter of financial 2024, easyJet said it is increasing capacity by about 15% compared to last year. It said yields are ahead of last year, but load factors are broadly in line. Costs are expected to be slightly lower.
easyJet also outlined an "ambitious roadmap to serve more customers and deliver attractive shareholder returns".
"Our new medium-term targets provide the building blocks to deliver a PBT greater than GBP1 billion. This will be driven by reducing winter losses, up-gauging our fleet and growing easyJet holidays," Chief Executive Officer Johan Lundgren said. "As part of our commitment to shareholder returns, the board intends to reinstate dividends commencing with the FY23 results."
easyJet last paid a dividend for financial 2019. It was 43.9 pence per share, which had represented a 25% cut from financial 2018.
The company also Thursday said it has agreed to buy 157 more aircraft from Leiden, Netherlands-based manufacturer Airbus SE, as well as a further 100 purchase rights.
By Tom Waite, Alliance News editor
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