EasyJet cuts winter losses by more than £50m

EasyJet's first-half losses are expected to narrow by more than £50m after this year’s early Easter helped offset a hit from the Israel-Hamas conflict.

In an update on its half-year performance, the group said it was on track for headline pre-tax losses of £340m to £360m in the six months to March 31, against losses of £411m a year earlier.

The airline said demand had bounced back since late November, with half-year figures also boosted by the start of the Easter holidays falling in March this year. It comes in spite of a “direct impact” of around £40m in the six months to the end of March due to the war between Israel and Hamas.

This relates to the suspension of flights to Israel and Jordan, alongside a softening of demand for trips to Egypt since the conflict began in October.

EasyJet said earlier this week it is suspending flights to Tel Aviv for the next six months after Iran’s missile and drone attack against Israel at the weekend. Between October and March, passengers numbers were up 8% year on year, while average fares paid increased by 9%.

Seasonal demand for air travel means airlines often record losses in the winter and profits in the summer. Bookings for this summer “continue to build well”, easyJet said, with “an increase in volume and pricing compared to the same period last year”.

EasyJet chief executive Johan Lundgren said: “The importance that consumers place on travel coupled with easyJet’s trusted brand has driven good demand for our flights and holidays. Our growth and focus on productivity have reduced winter losses by more than £50 million.

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“We have further enhanced our network with the launch of new bases in Alicante and Birmingham providing greater choice for consumers across Europe.

“We are well set up operationally for this summer season where we expect easyJet to be one of the fastest growing major airlines in Europe and take more customers on easyJet holidays than ever before.”