EasyJet loses £40m due to Israel-Hamas conflict but summer bookings are strong
EasyJet has managed to reduce its end of year losses, even though it took a £40m hit from the conflict between Hamas and Israel.
The airline reported a pre-tax loss of £126m for the last three months of 2023, which is less than the £133m loss it had during the same period in 2022. The number of passengers flying with EasyJet increased by 14% compared to the previous year.
However, the company expects a "direct impact of £40 million" in the six months leading up to March's end due to the war between Israel and Hamas. This is because flights to Israel and Jordan were paused, and there was less demand for trips to Egypt.
EasyJet's boss, Johan Lundgren, said: "We delivered an improved performance in the quarter which is testament to the strength of demand for our brand and network."
He also said that easyJet holidays are becoming more popular, with 48% more customers during this period. He added: "We see positive booking momentum for summer 2024 with travel remaining a priority for consumers."
February half term holidays could be hit by strikes including France and Spain
He explained flight and holiday bookings have started strongly during the traditional busy turn of year sales period. Customers are securing their summer holidays to favourite destinations like Spain and Portugal, as well as further afield places like Greece and Turkey.
Lundgren concluded by saying: "EasyJet remains focused on delivering for our customers in the coming months, while also expecting to deliver continuing performance gains." The airline is super happy about how many tickets they sold since December 21. They've been selling tickets so fast, it's like filling two planes every minute!
People are loving flights to places like Amsterdam and Paris, but also to sunny spots like Alicante and Malaga. Some new hot destinations are getting popular too, like Skiathos in Greece, Calabria in Italy, and even Rovaniemi in Lapland. May is turning out to be a top month for flying because families are planning their trips for the school half-term break.
The airline has also made a big deal with CFM for engines to power lots of new planes they're getting. This means they can fly more people around and do it in a way that's better for the planet.
Mr Lundgren said: "We are very pleased to have signed a deal with CFM, following a competitive selection process." He also mentioned that this deal will help the environment and let easyJet keep being one of the best airlines at Europe's busiest airports. He added, "EasyJet has a long history working with CFM and look forward to continuing to work in partnership in the years to come."
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]
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