Budget airline easyJet (LSE: EZJ) reached new heights in its latest fiscal year, swinging to a profit and restarting shareholder payouts on the back of “record” summer performance. Shares climbed 2.2% Tuesday morning on the results and are up 25% year-to-date.
The low-cost carrier reported a £432 million pretax profit for the 12 months ended September 30, a stark reversal from last year’s £208 million loss.
The FTSE 250 listed airline said revenue jumped 42% to £8.17 billion thanks to strong pricing power, capacity growth, higher load factors and expansion of its holiday business.
Specifically, easyJet flew 82.8 million passengers at an 89% load factor in fiscal 2022, a 19% increase in traffic from last year. Ancillary revenue also took flight, rising 51% to £2.95 billion to represent 36% of total sales.
On the back of the “exceptional” results, easyJet restarted dividends at 4.5 pence per share, or 10% of profit after tax.