EasyJet has announced plans to more than double its full-year dividend following a nearly one-third increase in profit, driven by robust travel demand and an exceptional performance from its holiday business. The airline, recognisable by its orange livery, reported a 34% rise in pre-tax profit to £610m for the year ending in October.
Operating profit also saw a 25% increase to £597m, albeit slightly below analyst expectations. Group revenue rose by 14% to £9.3bn as EasyJet carried almost seven million more passengers than the previous year, as reported by City AM.
Subject to approval, investors can anticipate an ordinary dividend of 12.1p per share, a significant increase from 4.5p in 2023, totalling £92m. These results come amidst concerns that Europe’s largest budget airlines may be entering a less prosperous period after a record couple of years post-pandemic.
Shares in Ryanair, Wizz Air and EasyJet have generally underperformed in 2024 due to supply chain issues and increased flight disruption caused by air traffic control problems and conflict in the Middle East and Ukraine. However, passenger demand surged over the summer, with EasyJet reporting a record £960m profit in the second half.
The Luton-based airline has shown greater resilience to these challenges thanks to its holiday division, EasyJet Holidays. This subsidiary recorded a 56% rise in pre-tax profit to £190m over the year and aims to expand its customer base by approximately 25% in 2025.
Kenton Jarvis, EasyJet’s finance chief set to succeed the outgoing CEO Johan Lundgren, expressed optimism about the airline’s future, stating: “The outlook for Easyjet is positive and travel remains a firm priority with consumers who value our low fares, unrivalled network and friendly service.”
He further highlighted growth strategies, mentioning, “The airline will continue to grow, particularly on popular longer leisure routes like North Africa and the Canaries and we plan to take 25 per cent more customers away on package holidays, as easyJet holidays continues to thrive.”
Lundgren, who is due to pass on leadership in January, commented on his departure: “I am pleased to be leaving a strong Easyjet, the future for the company is bright and I look forward to seeing Kenton delivering his ambitious plans, generating positive shareholder returns while making low-cost travel easy for millions of customers.”
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