easyJet PLC, the budget airline operator, forecast full-year profits ahead of current City guidance as it reported a big fall in pre-tax losses in quarter one.
“Based on current high levels of demand and strong bookings, easyJet anticipates beating the current market profit expectations for fiscal year 2023,” the company said.
In a trading update, the company reported quarter-one pre-tax losses were £133mln, down from £213mln last year, reflecting a 47% increase in passenger numbers, a 36% advance in revenue per seat (RPS) and a 10 percentage point rise in the load factor.
Ticket yields were 21% higher year-on-year, while easyJet Holidays delivered a £13mln pre-tax profit compared to a £1mln loss last year.
Looking ahead to quarter two, RPS is expected to continue the trends seen in quarter one with the airline and easyJet Holidays delivering record revenue booking days in January.
This booking strength has continued across quarter two and into summer 2023 and the company has upgraded expectations for customer growth at easyJet Holidays to around 50% from over 30% previously.
easyJet also said first-half pre-tax losses are expected to be “significantly better” than the first half of 2022.