Easyjet cuts losses and insists Britons will not ditch their summer holidays amid cost of living crisis

Budget airline easyJet has insisted cash-strapped Britons will not ditch their overseas holidays in the face of soaring costs as it posted sharply narrowed annual losses after a record summer performance.
By Holly Williams, PA Business Editor
Published 29th Nov 2022, 09:55 BST
Updated 29th Nov 2022, 09:55 BST
Easyjet has cut its lossesEasyjet has cut its losses
Easyjet has cut its losses

The group reported underlying pre-tax losses of £178 million for the 12 months to September 30 against losses of £1.1 billion the previous year.

EasyJet said it notched up its best earnings for a single quarter over the summer, at £674 million on an underlying basis, as the ending of pandemic travel restrictions put overseas holidays firmly back on the agenda.

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Chief executive Johan Lundgren said consumers will prioritise holidays as they come under pressure from soaring inflation, adding that bookings for next spring and summer are already looking positive.

But the low-cost carrier cautioned over "market-wide" cost increases and said its first-half fuel expense was set to be more than 50% higher year-on-year due to soaring inflation.

The group's costs - excluding fuel - jumped 106% over the past year to £4.6 billion.

EasyJet is hiking ticket prices in response, with prices looking "strong" for next Easter, though it hopes its budget offering will help it weather the cost-of-living crisis.

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