easyJet

easyJet
  • Country: United Kingdom
  • Website: easyjet.com
  • Callsign: Easy
  • Codes: U2 EZ EZY

easyJet Outlook 2024

easyJet is poised for strong growth and improved financial performance in 2024, driven by rebounding travel demand, network expansion, and the continued success of its holidays business.

In the first half of 2024, easyJet reduced its seasonal losses by over £50 million year-on-year, despite challenges from higher fuel costs and the conflict in the Middle East. Passenger numbers rose 8%, while ticket and ancillary yields increased 9% and 10% respectively. This improvement was fueled by targeted capacity growth, productivity gains, and flat non-fuel unit costs.

Looking ahead, bookings for summer 2024 are building well, with higher volumes and pricing compared to 2023. Currently 60% of Q3 and 30% of Q4 seats are booked. Revenue per seat is expected to be slightly up year-on-year in Q3 and well ahead in Q4. For the full year, easyJet plans to grow capacity by around 9%.

easyJet holidays continues to be a bright spot, delivering £31 million in profit in H1 2024 (+206% year-on-year) and 42% customer growth. The business aims for over 35% customer growth for the full year. By 2028, easyJet targets doubling the holiday unit’s profit to over £250 million.

Strategically, easyJet is focusing on building Europe’s best network, with an emphasis on primary airports, while keeping a lid on costs. New bases launched in Alicante and Birmingham should drive growth. 60 new routes are planned for winter 2024. Financially, easyJet maintains a strong balance sheet and expects to pay a dividend of 20% of FY2024 profits.

Analysts see further upside for easyJet shares, with a consensus price target of GBX 655. However, risks remain from geopolitical instability, potentially higher fuel prices, and labor unrest. Overall, though, easyJet appears well-positioned to soar in 2024 as the European aviation market recovers.