EasyJet Annual Pre-Tax Profits Rise 9% to £665M

EasyJet, the Luton-based budget airline, reported a better-than-expected rise in annual pre-tax profits on Tuesday, reaching 665 million pounds for the year ended September 30, up 9 percent from 610 million pounds the previous year and surpassing analyst forecasts of 650 million pounds.

The company's performance was bolstered by robust demand for its package holidays division, which saw profits surge 32 percent to 250 million pounds, meeting a key earnings target ahead of schedule. This prompted EasyJet to raise its ambition for the holidays arm to 450 million pounds by the 2029-30 financial year. Customer numbers in the holidays business grew by 20 percent to 3.1 million, driving revenue up 27 percent to 1.4 billion pounds, with average package prices increasing 5 percent to 698 pounds. The group anticipates a 15 percent expansion in holidays customers next year, accompanied by high single-digit price rises.

In contrast, the core airline operations faced headwinds, with pre-tax profits dipping slightly to 415 million pounds from 420 million pounds a year earlier. EasyJet attributed the challenges to slower route development, geopolitical tensions, macroeconomic pressures and...