easyJet Trading Update for the year ended 30 September 2023 and Proposed Aircraft Purchase
easyJet delivers record Q4 PBT, thereby achieving in FY2023 its existing financial targets.
Business momentum now allows the setting of new, ambitious, medium-term targets, a proposed new aircraft order and resumption of dividends.
• Record Q4 headline profit before tax expected to be between £650 - £670 million o Passenger growth +8% YoY o RPS +9% YoY vs guidance of c. 10%
Ticket yield per passenger +9% YoY
Ancillary yield per passenger +14% YoY o CPS ex fuel flat YoY
• Record H2 headline profit before tax expected to be between £850 - £870 million o Passenger growth +7% YoY o RPS +15% YoY o CPS ex fuel reduced 1.3% YoY vs guidance of flat
• FY23 headline PBT between £440 - £460 million o easyJet holidays continues to outperform and is expected to deliver around £120 million PBT for FY23
• Q1 FY24 Guidance o Capacity c.15% ahead YoY o Yields ahead YoY with load factors broadly in line o Airline CPS ex fuel expected to slightly reduce YoY
• New medium-term targets with the ambition to deliver >£1bn PBT o Group PBT1 per seat of £7-10 o High teen ROCE2 o Holidays PBT1 to >£250m o Capacity growth c.5% CAGR to 2028
• Proposed aircraft purchase o 157 firm orders for delivery between FY29 and FY34 and 100 Purchase Rights, subject to shareholder approval o Existing order book of 158 aircraft for delivery by FY29 o Conversion of 35 A320neo deliveries into A321neos within existing order o 315 aircraft now on order for delivery by FY34 alongside a further 100 purchase rights
• Proposed new shareholder returns policy, commencing with FY23 results, payable early 2024 o FY23 payout ratio of 10% of headline PAT o FY24 payout ratio expected to rise to 20% of headline PAT o Potential to increase level of future returns to be assessed over the coming years