As Demand Recovers, Easyjet Raises Profit Forecasts Again

Holidaymakers continue to shrug off the uncertain economic climate, as EasyJet raised its annual profit forecast again on Tuesday.

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As a result of "network transformation, improved revenue capability, and strong demand," EasyJet has forecast a profit of £260 million ($322 million) for its financial year to September.

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In spite of the uncertain macroeconomic outlook around the world, EasyJet expects to surpass current market profit expectations based on high demand and bookings over the summer, as it looks forward to "strong" summer travel.

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The north London-based airline had already raised its annual guidance in January.

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Shares rose 1.6 percent to 519.2 pence following Tuesday's news.

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As Hargreaves Lansdown analyst Susannah Streeter noted, EasyJet is gliding out of cloudy skies and into profitable skies.

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“With good bookings already secured, Sun is looking good for the summer."

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During the pandemic, consumers were unable to travel elsewhere, so they prioritized traveling and experiencing new things over buying more things.

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In the first half of its financial year, EasyJet traditionally experiences a loss, but it reported a "significant" improvement on Tuesday.

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In the six months to March, the company expects to incur pre-tax losses of between £405 million and £425 million.

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Compared to last year, this would be a significant improvement of over £120 million.

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Additionally, the carrier reported that first-half revenues increased by 80 percent to £2.69 billion, while passenger numbers grew by more than a third to 15.6 million.

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The airline had been expected to turn a profit after three consecutive years of losses due to the Covid fallout.

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After the deadly Coronavirus outbreak in early 2020 grounded flights and caused huge losses and job losses, the aviation sector is riding high.

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