EasyJet posts bumper profits but warns French traffic control strikes could blow it off course

Easyjet posted bumper profits as Britons jet off on holiday – but warned upcoming strikes could hurt its performance.

The low-cost airline revealed record profits of £203million for the three months to the end of June, up from a £114million loss a year earlier. It flew 23.5m passengers, up from 22m in the same period of 2022.

The Luton-based firm said it expected to generate ‘another record’ in the current quarter ending in September despite cancelling 1,700 flights last week as it tries to work around French traffic control strikes.

Johan Lundgren, chief executive, also warned the planned strikes at Gatwick airport are a further headache.

Although unions partially suspended the action thanks to a new pay deal, hundreds of ground staff are still set to strike at the airport next week and in August.

Top flight: EasyJet posted record profits of £203m for the three months to the end of June, up from a £114m loss a year earlier

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: ‘Industry strikes have the potential to cause havoc and the extent of this won’t be known just yet.

‘The broader implications of sweeping cancellations or changes will dent profit momentum in a big way if the issues are protracted.’

Airlines are also facing unseasonably hot weather in Europe, with temperatures hitting nearly 50 degrees, although Lundgren said the extreme conditions have yet to affect bookings. 

‘British people have gone for a long time to places like Egypt or Turkey in August, which constantly have very high temperatures.

‘So it doesn’t seem to be a deterrent at all for a lot of people. They are on holiday, sitting by a pool or swimming in the Mediterranean and have air-conditioned hotels,’ the Easyjet chief said.

The bumper results, which topped analysts’ expectations, were bolstered by soaring ticket prices, which are up 17 year-on-year. The average price for a fare is now £73.

Lundgren said half of the average £11-per-seat fare rise was due to fuel, with profits largely driven by customers paying for add-ons, such as choosing seats and luggage.

Revenues for these add-ons climbed 28 per cent compared to last year, to £622million.

The average revenue per seat rose to £90.49, up 22 per cent – and 36 per cent from pre-pandemic.

Total revenue rose 34 per cent on the year to £2.4billion, with ‘good booking momentum’ into the winter. The shares fell 3.9 per cent, or 19.3p, to 475.6p.