EasyJet Reports Increased Revenues Due to High Demand for Package Tours

• EasyJet reports an increase in revenues due to high demand for package tours.
• The package tour division showed a 32% increase in revenue.
• The company reduced the growth rate of seats in its airports to 7%.
• Management is confident in achieving its targets for the upcoming year.

EasyJet's low-cost model has secured increased annual revenues due to strong demand for its package tours, which additionally compensates for challenging conditions in the airline market.

The company from Luton reported an increase in revenue to £665 million for the year ending September 30, which is 9% higher compared to the previous year. This exceeded analysts' forecasts, who expected £650 million.

The largest success for EasyJet was reported by the package tour sales division, where revenue rose by 32% to £250 million. The company's management has raised the revenue target for this division to £450 million by 2030.

Despite the positive results in the package tour segment, the airline's revenue decreased to £415 million, which is 1% less than in the previous year. EasyJet noted that improving airline performance indicators will be more challenging than expected, due to geopolitical and economic factors.

The company also reduced the growth rate of seat capacity in its airports to 7% in the upcoming year, which is 9% lower than in the previous year. EasyJet's CEO, Johan Lundgren, expressed optimism in achieving the target revenue of over £1 billion in the medium-term perspective.

EasyJet Holidays registered over 3 million clients, which is 20% more, following an increase in the average package price by 5%, to £698. The company expects further growth in its client base by 15% in the upcoming financial year.

The low-cost carrier has also invested in new routes to popular tourist destinations, such as Tenerife, Lanzarote, and Malaga. The opening of new bases in Milan, Rome, and London, as well as the closure of two unprofitable bases in Toulouse and Venice, is part of the company's strategy.

Tags: Aviation