EasyJet blames ‘competitive environment’ as winter losses grow
The Luton-based group reported a headline pre-tax loss of £93 million for the three months to December 31.
No-frills carrier easyJet said its losses grew by 52% for the latest quarter on the back of investments in Italy and a “competitive environment”.
The Luton-based group reported a headline pre-tax loss of £93 million for the three months to December 31, up from £61 million a year earlier.
This came despite a 7% rise in passenger numbers for the period, as well as growing profits at package holiday arm easyJet holidays and a continued reduction in costs from flight disruption.
EasyJet attributed its financial performance to it being the first winter running bases at the Italian airports of Milan Linate and Rome Fiumicino.
It previously stated this would require an estimated investment of £30 million, but it was “confident that these strategic investments will see revenue maturity over the coming years”.
In relation to its latest results, easyJet added that it will take time for “capacity investments to reach maturity”, and that there is a “continued competitive environment in specific markets”.
The airline increased its available seat kilometres – calculated by multiplying the number of available seats by the distance flown – by 9% over the period.
EasyJet chief executive Kenton Jarvis said: “We have seen continued demand for our flights and holidays over the last quarter, growing airline passenger numbers and load factor, with easyJet holidays maintaining its strong growth trajectory attracting 20% more customers year on year.
“Our focus on, and investment in, customer experience and punctuality is driving strong results, with a four percentage point rise in customer satisfaction and on-time performance year on year.
“Bookings are building well for the summer season, with our largest ever January booking period.
“We remain committed to delivering sustainable value and continue to progress towards our medium-term target of generating over £1 billion in profit before tax.”
Airlines often record losses during the winter months when demand for flights drops.
In November, easyJet reported a 9% rise in headline pre-tax profits to £665 million for the year to September 30.
