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easyJet Beats Profit Forecasts, Raises Medium-Term Target for Holiday Business
easyJet reported stronger-than-expected annual operating profit and upgraded its medium-term goal for its fast-growing holiday division after surpassing earlier targets. Despite industry pressures from rising costs and air-traffic control strikes, the carrier continues to see strong demand.
UK-based carrier easyJet (EZJ.L) on Tuesday reported annual operating profit that exceeded expectations and raised its medium-term target for its holiday business after hitting its previous goal ahead of schedule.
European airlines have posted mixed results in the final quarter of the year, as rising costs and disruptions from air-traffic control strikes have weighed on their balance sheets despite solid demand.
For the financial year ending in September, easyJet’s headline operating profit rose to £703 million ($921.1 million), ahead of the £669.37 million forecast by analysts polled by LSEG.
The company now expects its high-margin holiday arm, easyJet Holidays, to generate £450 million in pre-tax profit by 2030—well above its earlier medium-term target of £250 million set for this year.
“We are well positioned to capitalise on the significant opportunities ahead, and we’re confident in achieving our medium-term ambition of delivering over £1 billion in profit before tax,” CEO Kenton Jarvis said in a statement.
The holiday business has played a key role in strengthening easyJet’s results in recent years, as demand for price-controlled package holidays has rebounded among cost-conscious travelers, benefiting the wider airline sector.
In July, the carrier said it expected strong profit growth despite higher fuel costs and the negative impact of French air-traffic control strikes on earlier results.
easyJet, an Airbus (AIR.PA) operator with a fleet powered by CFM engines, has avoided many of the industry-wide challenges stemming from service delays at Pratt & Whitney, which affected several other airlines.
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