Home Business News easyJet eyes further growth this summer

easyJet eyes further growth this summer

by Sarah Dunsby
2nd Apr 24 9:52 am

British low-cost airline easyJet recently announced that they are in talks with the European Commission about taking over airport slots at Milan Linate Airport. These slots could be available due to Lufthansa’s alliance with ITA Airways, which seeks a 41% stake in the state-owned Italian rival for €325 million (£278.8 million). Meanwhile, Lufthansa is also in talks with easyJet for remedies.

The Commission had previously warned that the Lufthansa-ITA deal in January might negatively affect competition in passenger air transport services on long-haul and short-haul routes like those connecting Italy with Central European countries, as well as routes between Italy and the US, Canada, Japan, and India. As such, easyJet’s decision to take in airport slots at the Milan Linate Airport may help counterbalance this disruption.

In March, easyJet also announced its new operation at Birmingham Airport. It would be the airline’s first new UK base in over ten years since it opened at Southend Airport in 2012, promising more flight options and potentially lower passenger fares. easyJet has also stated that the move would create 140 jobs for pilots and crew and support 1,200 jobs indirectly. Previously, easyJet operated flights to and from Birmingham Airport using planes based elsewhere.

The airline expects the new operation to facilitate additional connectivity, which can help serve the holiday community while providing healthy competition in the industry by offering better fares for passengers. The new base at BHX is expected to attract thousands of holidaymakers across the West Midlands as passengers seek to explore new destinations while businesses find new overseas trade links.

easyJet earnings and low fares

In 2023, easyJet reported huge profits and a major boost in earnings, allowing the budget airline to restore dividends. The airline’s share price was up more than 3% following these strong results, with profits reaching £455 million (before tax) after taking a £178 million loss in the previous year. Meanwhile, revenues increased by 42% as demand for travel continues to rise. The airline has also steadily opened more than 80 new routes in 2023, leading to a 19% increase in passenger numbers.

The holidays also more than doubled these positive results as easyJet Holidays profits grew by 221%, reaching over £122 million before tax. To add to the major increases in profit and revenue, the company aims to recover dividends at 4.5p per share, which may please investors as the numbers point to £34 million in the next year.

Much of easyJet’s success comes from its ability to provide affordable and accessible air travel in an economy filled with uncertainty. As more passengers seek travel experiences, easyJet allows customers to easily find cheap flights to destinations ranging from Albania, Iceland, and Italy to Egypt, the Maltese Islands, and the Netherlands. The airline’s Low Fare Finder feature allows passengers to easily compare flight prices and determine the best deal for value.

easyJet also offers other travel booking features, such as various holiday bookings. Passengers can easily plan and book packages and all-inclusive holidays to cut costs, as well as specialised holidays like adults-only or couple holidays, ensuring that their services cater to varied demands.

Nowadays, easyJet is one among various air travel companies seeking to meet customers at friendlier prices and budgets. In a previous post, we highlighted another low-cost airline, Fly Atlantic, which plans to offer transatlantic flights from Northern Ireland to Europe and North America this summer. Once fully operational, Fly Atlantic eyes the creation of 21,000 new jobs by 2030.

As demand for affordable and budget-friendly travel continues to increase, we can expect to see further expansions and investments from low-cost airlines like easyJet.

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