EasyJet to resume dividend payments after record profits of up to £670m

EasyJet is proposing to order new aircraft and resume dividend payments to shareholders after making a record profit this summer.

The airline said it expects its profit before tax between July and September to fall within the range of £650million and £670million.

This was driven by an eight percent increase in passenger numbers and a nine percent rise in fare prices, both compared with the same period last year.

EasyJet said it expects its pre-tax profit for the year ending in September to fall within the range of £440million to £460million.

Johan Lundgren, CEO of EasyJet said: “We have delivered a record summer with strong demand for easyJet’s flights and holidays with customers choosing us for our network, value and service.

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“This performance has demonstrated that our strategy is achieving results and so today we have set out an ambitious road map to serve more customers and deliver attractive shareholder returns, underpinned by a continued focus on costs and operational excellence.”

The company is proposing to resume paying dividends to shareholders early next year at a rate of 10 percent of annual profit after tax. This figure is projected to increase to 20 percent for the following year.

Mr Lundgren continued: “Our new medium-term targets provide the building blocks to deliver a PBT (profit before tax) greater than £1billion.

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“This will be driven by reducing winter losses, upgauging our fleet and growing easyJet Holidays.

“As part of our commitment to shareholder returns, the board intends to reinstate dividends commencing with the FY23 (the year to the end of September) results.” 

Mr Lundgren said the airline had reached a proposed agreement with Airbus for an additional 157 aircraft orders and a further 100 purchase rights.

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He said: “This will enable easyJet’s fleet modernisation and growth to continue beyond 2028 while providing substantial benefits including cost efficiencies and sustainability improvements.”

Looking towards the first quarter of the new financial year, easyJet anticipates a 15 percent year-on-year growth.

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