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easyJet (LON: EZJ) has reported a significant improvement in its third-quarter profit, with a year-on-year increase of £33 million. This growth is driven by strong demand for its primary airport network. The airline's passenger numbers rose by 8%, and revenue per seat (RPS) increased by 1% year-on-year. However, the headline cost per seat excluding fuel (CPS ex fuel) saw a 1% increase, and the 1% increase in average sector length resulted in flat headline cost per available seat kilometer (CASK) ex fuel year-on-year.
easyJet holidays continues to perform robustly, with a profit before tax (PBT) growth of 49%, reaching £73 million. Passenger growth in this segment increased by 33%.
As of June 30, 2024, easyJet's net cash position stood at £456 million, up from £146 million as of March 31, 2024. The company successfully took ownership and delivery of all 16 expected aircraft, with the final one arriving in July.
Booking Trends and Capacity Expansion
Bookings for the fourth quarter continue to build, with 69% of capacity sold, an increase of 1 percentage point year-on-year. The airline has 7% more capacity on sale, translating to 1.5 million more seats sold for the peak summer season compared to the same time last year, with total yield remaining broadly flat year-on-year.
Looking ahead to the first quarter of 2025, on-sale capacity is up approximately 5%, with 20% of the program currently sold, an increase of 2 percentage points year-on-year.
Positive Outlook for FY24
easyJet has a positive outlook for the full fiscal year 2024, with several key expectations:
- Capacity: The airline expects to offer approximately 100 million seats for the full year.
- Revenue Per Seat: The fourth quarter is expected to continue the trend seen in the third quarter.
- easyJet holidays: The division is now expected to deliver a PBT of over £180 million, representing a profit growth of over 48% year-on-year.
- Cost Per Seat: The company continues to anticipate a low single-digit increase in headline CPS ex fuel year-on-year for the second half, while the fuel CPS is expected to remain flat year-on-year.
Overall, easyJet's strong third-quarter performance and positive outlook for FY24 reflect its strategic focus on leveraging its primary airport network and expanding its capacity.
