EasyJet pre-tax profits grow in Q3, expects £25m hit to FY profits from French strikes

(Sharecast News) - Budget airline EasyJet said on Thursday that pre-tax profits had grown to £286,0m in the three months ended 30 June, up £50.0m year-on-year, but warned that profits would be impacted by recent French industrial action. EasyJet said Q3 profit growth was driven by "strong demand" for its primary airport network and benefited from the timing of Easter. Airline passenger numbers increased 2% to 25.9m, while load factor improved by 0.2ppts to 90.2%.

However, EasyJet warned of a hit to FY profits from higher fuel costs and a recent strike by French air traffic controllers at the beginning of the peak summer travel season. EasyJet expects a roughly £25.0m hit to profits for the year ending 30 September.

The FTSE 100-listed firm stated that although demand had remained strong, travellers were now taking longer to book tickets amid worsening global macroeconomic sentiment.

"The outlook for FY25 remains positive, with good profit growth expected year-on-year, albeit impacted by recent higher fuel costs and the scale of industrial action by French air traffic control," said EasyJet. "With 67% of our Airline's fourth-quarter capacity sold, the final outcome for FY25 will, as always, depend on late summer bookings and the associated yields."

Looking to Q126, EasyJet said on sale seat capacity was up roughly 5%, with 19% of the program currently sold, up 1ppt year-on-year, while its EasyJet holidays unit was currently 50% sold for Q126.

Reporting by Iain Gilbert at Sharecast.com