BRITISH no-frills airline EasyJet today announced its first annual profit since the outbreak of the Covid-19 pandemic, but warned the Israel-Hamas war would impact its winter results.

Profit after tax stood at £324 million (RM1.9 billion) in the year until the end of September on higher demand and increased fares, EasyJet said in a statement.

That compared with a loss after tax of £169 million in its 2021/22 financial year.

EasyJet chief executive Johan Lundgren gave an upbeat outlook, even if the group saw a negative impact from the Israel-Hamas war.

“We see a positive outlook for this year with airline and holidays bookings both ahead year on year,” he said in the statement.

Lundgren said “consumer research highlights that around three quarters of Britons plan to spend more on their holidays versus last year with travel continuing to be the top priority for household discretionary spending”.

EasyJet also noted “early winter results… will see an impact from the conflict in the Middle East”.

The airline, which flies mainly across Europe, has paused flights to Israel and Jordan owing to the war.

Looking back at its last financial year, EasyJet said revenue surged 42% to £8.2 billion, “predominantly due to pricing strength, increased flown capacity, improved load factors” plus growth of its holidays business.

EasyJet’s share price gained 2.1% to £4.13 in early London trades following the earnings update.

“Investors are being rewarded for their patience following a bumpy few years with the reinstating of the dividend,” noted Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

With travel demand rebounding strongly after the pandemic grounded planes, EasyJet last month announced a deal worth close to US$20 billion (RM93.4 billion) for 157 Airbus planes and alterations to a previous order with the European planemaker. – AFP, November 28, 2023.