Easyjet enhances full-year profit guidance as winter demand surges

EasyJet's annual earnings are set to trump current forecasts following a rebound in winter bookings, the group said on Tuesday, sparking a rally in airline stocks.

The budget airline now anticipates pre-tax profits will exceed 126million for the 12 months ending September 2023, having made a 183million loss the previous year amid Covid-related restrictions and widespread cancellations.

For the three months ending December, the company said its headline loss before tax declined by 80million to 133million as its passenger and ancillary revenues both climbed by more than 75 per cent.

EasyJet shares shot up by 9.6 per cent to 512.8p on Wednesday morning, making them the FTSE 350's second-highest riser behind media business Ascential Group.

Since the start of 2023, the firm's shares have seen their value soar by 57 per cent, more than 11 times the FTSE 250 Index's 4.6 per cent expansion.

Other airlines saw their share prices receive a boost from the easyJet results today, with Jet2 shares jumping 4.7 per cent, Wizz Air rising 4.6 per cent, and British Airways owner International Airlines Grogrowing by 1.8 per cent.