EasyJet shrinks losses as it braces for rocketing fuel prices next year

Budget airline EasyJet has shrunk its losses as it braces for a 50 per cent rise in the price of fuel next year as passenger levels fly.

The loss-making airline, like most, had been struck hard by pandemic restrictions, but is now battling against soaring inflation.

EasyJet reported a pre-tax loss of £208m in the 12-months to the end of September, which includes around £78m associated with continued travel disruption. The airline has shrunk down a more than £1bn cavity from the year before.

However, fuel costs are expected to eat into profits.

Passenger levels have soared more than 240 per cent in the 12-month period, after Covid-19 restrictions eased, which paved the way for much-documented travel chaos.

In a statement today, the European carrier assured that it had already begun its seasonal recruitment campaign, so to avoid more staffing shortages during summer – it’s busiest, and most profitable, time of year.

Total revenue rose nearly 300 per cent to £5.7bn, from £1.4bn in the same period a year prior – with the revenue the airline generates per seat up a third to £67.33.

Bosses at EasyJet have forecast revenue per seat to rise 20 per cent next year.

Chief executive Johan Lundgren was pleased with the airline’s pandemic bounceback, saying “EasyJet does well in tough times”.

“Legacy carriers will struggle in this high-cost environment. Consumers will protect their holidays but look for value and across its primary airport network, easyJet will be the beneficiary as customers vote with their wallets,” he said.

“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. With one of the strongest balance sheets in European aviation, we are ready to take opportunities as they present themselves.”