easyJet shares up on narrowed losses and robust summer demand

Shares in low-cost carrier easyJet (LSE: EZJ) were up 3.7% by midday Wednesday after the airline reported narrowed losses in its fiscal first quarter despite a £40 million impact from the Israel-Hamas conflict.

The FTSE 250 listed low-cost carrier posted a pretax loss of £126 million for the October-December period, an improvement from £133 million a year earlier. Revenue jumped 22% to £1.8 billion as passenger numbers grew 14% to 19.8 million.

Though the airline predicts a £40 million hit over the next six months due to the Middle East crisis, easyJet sees “positive booking momentum” for summer 2024 holidays to Portugal, Spain, Greece and other destinations. The airline also expects over 35% customer growth for its Holidays arm.

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“We delivered an improved performance in the quarter, which is testament to the strength of demand for our brand and network,” said CEO Johan Lundgren. “The popularity of easyJet holidays also continues to grow.”

With consumers still prioritizing travel and capitalizing on heavy turn-of-year discounts, easyJet’s seats sold and yield are already outpacing 2023. Shares have climbed 12.5% over the past year.