(News Bulletin 247) – The low-cost airline published good figures for the first quarter of its 2023-2024 financial year and showed a certain confidence in the pricing environment.

Easyjet performed quite well at the end of last year. The British low-cost airline published good results for the first quarter of its 2023-2024 financial year, that is to say from October to December last year.

The group reported revenue growth of 22% to 1.8 billion pounds over the period, slightly better than the consensus of 1.778 billion pounds according to UBS.

“Ancillary revenues (+6% over one year per seat)”, i.e. revenues from certain services such as the choice of cabin seating, “but also ticket revenues (+2% over one year per seat), increased Easyjet’s revenue per seat (+3% year-on-year) in the first quarter”, explains Yi Zhong, analyst at the independent research firm AlphaValue.

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A good summer season ahead?

The pre-tax loss stood at 126 million pounds, less than the consensus feared (155 million pounds).

Stifel also notes that the group does not perceive, for the future, any weakness in “yield” (price dynamics to simplify). For the second quarter, from next January to March, Easyjet is counting on an increase in revenue per seat “in the mid-single digit range”, i.e. around 5%.

The company also expects to reduce its loss for the first half as a whole compared to the same period of the previous financial year, despite an impact of the conflict in the Middle East estimated at 40 million pounds. Which means that this loss will be less than 411 million pounds, while the consensus previously expected 433 million pounds.

As for the summer season, Easyjet explained that the trend was good in terms of revenue per seat in the second half, that is, from April. Both yields and load factors are also up year-on-year, both for the third and fourth quarters.

See you at the end of February for Air France-KLM

Following these announcements, Easyjet gained 3% on the London Stock Exchange around 2:45 p.m. and dragged other European airline groups in its wake. Air France-KLM takes 4.2%, IAG (parent company of Iberia and British Airways) advances 2.6% and Lufthansa gains 3.5%.

“This is the first company to speak out about the impact of the situation in the Middle East, and the impact is not that significant. Which is also reassuring for the entire industry,” says Yi Zhong. “The group’s outlook on yields over the next three quarters, especially the coming summer, is also positive for other airlines,” adds the analyst.

Air France-KLM will publish its results for the fourth quarter and full year 2023 on February 29.