Highlights from EasyJet’s Fiscal Year 2024 Performance

1. Impressive Profit Growth

• Headline profit before tax surged 34%, increasing to £610 million from £455 million in FY 2023.
• Record second-half profits of £960 million highlight steady demand throughout the year.

2. Passenger and Holidays Segment Growth

• EasyJet saw passenger numbers rise 8% year-over-year, totaling 89.7 million, fueled by new routes and expanded networks.
• EasyJet Holidays experienced a substantial 56% increase in profits to £190 million, with customer numbers up 36%.

3. Better Management of Winter Losses

• Winter losses diminished by £40 million due to operational efficiencies and an enhanced holiday portfolio.

4. Smart Cost Management Amid Inflation

• Even amid industry inflationary challenges, EasyJet kept cost growth minimal, with only a slight increase in cost per seat (excluding fuel).

Outlook for 2025

Increasing Capacity and Optimizing Operations

• EasyJet plans to increase seat capacity by 3% in FY 2025.
• A further drop in winter losses is anticipated, with a strong performance expected for Q1.

Investment Considerations

RBC Capital Markets identify EasyJet’s appeal, particularly within its Holidays segment. However, competing airlines may offer superior margins or more attractive valuations.

Explore Financial Tools

• Assess EasyJet’s valuation using analytical tools provided by Entreprenerdly.com.
• Keep track of EasyJet’s sector positioning through tools like the Sector P/E Ratio.