easyJet PLC (LSE:EZJ) has reported a strong performance in its fourth quarter with EBITDAR of between £665mln to £685mln, in line with the same period in 2019, although it still expects to make a loss before tax for the year of between £170mln and £190mln.
In a trading update for its full-year to September 30, 2022, the budget airline operator said its full-year loss includes around a £64mln non-operating, non-cash forex loss from balance sheet revaluations together with around £75mln of extra disruption costs when compared to 2019, reflecting disruption across the industry in the third quarter.
The impact of the Omicron COVID-19 strain, the war in Ukraine, and the industry-wide issues experienced this summer all affected operational performance during the financial year, the group said.
As a result, easyJet said it will not be paying a dividend for the year to 30 September.
For the fourth quarter, easyJet said it flew 26.3mln seats, operating at 88% of pre-COVID-19 levels with EBITDAR in the quarter in line with the same period in 2019 driven by proactive management actions.
Total group revenue for the quarter is expected to be around £2.515bn benefiting from strong demand for its network and the continued outperformance of ancillary products and easyJet holidays.
Load factors have risen, ending the quarter at 92%, with strong yields, as demand remained solid, it added.
Looking ahead, easyJet said it expects capacity in quarter one 2023 to be up 30% year-on-year to around 20mln seats, around 83% of pre-COVID-19 levels, with booked load factors ahead of the same point in 2019, while yields remain robust.
In the trading update, Johan Lundgren, CEO of easyJet, said: “Our summer 23 season went on sale last week and we were filling the equivalent of more than four A320 aircraft a minute in the opening hours demonstrating the continued demand.
"easyJet is Europe's largest operator at primary airports with one of the strongest balance sheets in the aviation industry. We face the uncertain macro-economic environment with many strengths through our brand, network and business model which enable us to provide low fares to millions despite the rising cost of living."