easyJet PLC swung back into profit after a record second half despite a challenging external operating environment and high fuel costs.
The budget airline operator reported full-year pre-tax profit for the year ended 30 September 2023 of £455 million compared to a pre-tax loss of £178 million the year prior, as revenue jumped 42% to £8.17 billion.
easyJet holidays profits grew 221%, delivering pre-tax profit of £122 million, while passenger numbers rose 19% to 82.8 million and airline revenue per seat (RPS) increased 21% to £79.84.
The airline also reinstated the dividend with a 4.5p payout and expects the dividend to increase to 20% of headline profit after tax in the new financial year.
Looking ahead, the firm reported a positive outlook for financial year 2024 with October RPS up 12% and first-quarter RPS expected to be ahead year on year despite being impacted by the Middle East conflict.
easyJet said second quarter through to the fourth quarter RPS on early bookings are all ahead of the year before, with costs per seat in the first half expected to be broadly flat.
The easyJet holidays division is expected to grow more than 35% in the new financial year with average selling prices up by high single digits.
Johan Lundgren, easyJet's chief executive officer, said: “We see a positive outlook for this year with airline and holidays bookings both ahead year on year and recent consumer research highlights that around three quarters of Britons plan to spend more on their holidays versus last year with travel continuing to be the top priority for household discretionary spending.”