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EasyJet Posts Narrower FY22 Loss, Sees Capacity Growth; Stock Down

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Shares of easyJet plc were losing around 4 percent in the morning trading in London after the British low-cost airline reported a loss in its fiscal 2022. However, the loss was narrower than last year with strong growth in revenues as demand returned.

Citing a loss, the company said its Board will not be recommending payment of a dividend in respect of the year.

Looking forward, easyJet projects first-quarter load factor growth of approximately 10 percentage points year-over-year.

The company sees capacity of around 38 million seats in the first half, with year-over-year growth of 25 percent, and 56 million seats in the second half, with year-over-year growth of around 9 percent.

Fourth-quarter capacity is estimated around pre-pandemic levels.

easyjet holidays targets more than 30 percent customer growth from last year.

Johan Lundgren, easyJet Chief Executive said, "The summer saw easyJet achieve its highest ever earnings for a single quarter … Over the next year, we are targeting customer growth and are well placed to drive returns and margins while maintaining a rigorous focus on cost."

In the year, capacity and yields increased as customer confidence to travel returned once Covid-19 related restrictions were lifted across Europe, along with enhanced contribution from ancillary product offering and easyJet holidays.

In the year, loss before tax was 208 million pounds, compared to a loss of 1.04 billion pounds last year. Loss per share was 22.4 pence compared to a loss of 159.0 pence.

Headline loss before tax was 178 million pounds, compared to a loss of 1.14 billion pounds in the prior year. Headline loss per share was 19.6 pence compared to a loss of 166.9 pence.

Total revenue increased 296 percent to 5.77 billion pounds from prior year's 1.46 billion pounds due to the increase in capacity flown and ancillary products continuing to deliver incremental revenue. Passenger revenue increased 282 percent to 3.82 billion pounds.

The company flew 69.7 million passengers in the year, up 242 percent on the prior year. Capacity grew 189 percent from last year to 81.5 millions of seats.

Load factor for the year was 85.5 percent, compared to 72.5 percent in the prior year.

In London, easyJet shares were trading at 374.04 pence, down 4.82 percent.

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