Low-cost carrier EasyJet announced on Wednesday that it expects to beat current market expectations for 2023. This comes after the company experienced an increase in bookings for the summer and released its quarterly financial results.
EasyJet reported a gross loss before tax of 133 million pounds ($163.9 million) for the final quarter of 2022, however, the company stated that it expects its loss before tax in the first half of 2023 to be less than the first half of 2022.
“This strong booking performance, aided by the airline’s step changed revenue capability, has driven an 80 million pound year-on-year boost in the first quarter with continued momentum as customers prioritize spending on holidays for the year ahead,” Chief Executive Johan Lundgren said with regards to the increase in summer bookings.
EasyJet Holidays, the service that provides holiday packages including accommodation and flights, is also expecting a rise in financial performance after upgrading its expectation for consumer growth from 30% to 50% year-on-year.
As inflation concerns and a rise in costs continue to threaten consumer spending, analysts are hopeful that travelers will continue to prioritize vacation spending, thereby extending the aviation sector’s progress to returning to 2019 travel levels.