EasyJet profit surges following record-breaking summer numbers

“It also represents a significant step towards our goal of sustainably generating over £1 billion annual profit before tax. I am pleased to be leaving a strong easyJet, the future for the company is bright and I look forward to seeing Kenton delivering his ambitious plans, generating positive shareholder returns while making low-cost travel easy for millions of customers.”

Jarvis also said in the statement: “The outlook for easyJet is positive and travel remains a firm priority with consumers who value our low fares, unrivalled network and friendly service. 

“The airline will continue to grow, particularly on popular longer leisure routes like North Africa and the Canaries and we plan to take 25% more customers away on package holidays, easyJet holidays continues to thrive.”

EasyJet continues to profit from rise in cost-conscious flyers

Richard Hunter, head of markets at Interactive Investor, said in an email note: “It seems that the launch of the holidays unit has come at the right time with cost-conscious consumers searching for value packages, and the group has high hopes for the unit’s longer-term contribution to overall profits. 

“This also chimes with the group’s value-conscious appeal and the increasing body of evidence which tends to suggest that the family holiday remains almost sacrosanct and outside of normal budgetary restraints, which has played into the hands of easyJet and its keenly priced offerings of flights and holiday packages. 

“Its network of destinations are usually convenient and difficult for some of its competitors to mirror, while the group has also managed to keep a relative lid on its prices.”

ADVERTISEMENT

Dan Coatsworth, investment analyst at AJ Bell, also said in an email note: “Results from easyJet offer the latest evidence that a week in the sun remains a non-negotiable for many people.

“One of Lundgren’s strategic initiatives – the big expansion into package holidays – is paying off and his successor, Kenton Jarvis, will be looking to build on this success. The market share gains made by this part of the business suggests the easyJet brand has real clout with holidaymakers.

However, the sailing, or in this case, flying, may not be entirely smooth, with Coatsworth pointing out that hurdles still remain. 

He continued: “Jarvis still has a challenge on his hands to steer the company towards some ambitious medium-term profit targets and it’s fair to expect some turbulence along the way given the wider supply chain issues in the sector and exposure to volatile fuel prices.

ADVERTISEMENT

“However, easyJet is in much better shape than it was a few years ago and that’s reflected in a big uplift in the dividend which signals confidence in its future trajectory.”