Carrier reports £93m quarterly loss as it invests in new Italian airport bases, though passenger numbers rose 7% in the period.
An EasyJet plane taking off at Liverpool John Lennon Airport(Image: Julian Hamilton/Sunday Mirror)
Budget airline easyJet revealed its losses widened by 52% during its most recent quarter, driven by Italian expansion investments and challenging market conditions.
The carrier posted a headline pre-tax deficit of £93 million for the three months ending December 31, compared with £61 million in the corresponding period last year.
This was despite passenger numbers climbing 7% during the quarter, alongside rising profits from package holiday division easyJet holidays and ongoing reductions in flight disruption expenses.
EasyJet attributed its financial results to the inaugural winter of operating bases at Italy’s Milan Linate and Rome Fiumicino airports.
The company had previously indicated this would necessitate an estimated £30 million outlay, though it remained “confident that these strategic investments will see revenue maturity over the coming years”.
Regarding its recent performance, easyJet noted that “capacity investments to reach maturity” would require time, whilst acknowledging a “continued competitive environment in specific markets”.
The carrier boosted its available seat kilometres – determined by multiplying available seats by flight distances – by 9% throughout the quarter.
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.”
Carriers typically post losses during the winter period when appetite for flights declines.
In November, easyJet announced a 9% increase in headline pre-tax profits to £665 million for the year to September 30.
