EasyJet to snap up more planes as profits surge

Easyjet has outlined plans to buy more planes and restore its dividend after posting record profits over the summer.

The budget airline said it will buy 157 short-haul aircraft for delivery from 2029.

EasyJet now has 336 aircraft in the sky and a further 315 on order for the next decade, as well as the rights to buy another 100.

The company’s chief executive, Johan Lundgren, said: “This will allow fleet modernization and growth to continue…while delivering significant benefits including cost efficiencies and improved sustainability.”

With more planes, the British company can sell more seats on routes from European hotspots such as London Gatwick and Amsterdam, where there is little room to add more flights.

Flying high: EasyJet said it will take 157 short-haul aircraft for delivery from 2029.

The expansion came after EasyJet said profits were between £650m and £670m in the three months to September, a record fourth quarter for the budget airline.

This was due to an 8 percent increase in passengers – 26 million people were carried during that time – and a 9 percent increase in fares compared to the same period last year.

Fourth-quarter revenue hit £3.1bn after the airline revealed it earned £790m from extra passengers alone, up from £641m in the same period last year.

This extra revenue, which comes from payments for things like seat selection, extra baggage or meals, is expected to reach £2.2bn for the year, up from around £1.6bn in 2022.

After a great summer, EasyJet said it would return dividends after suspending payouts during the pandemic. Full-year profits are expected to reach £460m thanks to a stronger-than-expected boost from its festive division.

Lundgren has set new targets for the business, including reaching profits of £1bn in the “medium term”.

Richard Hunter, analyst at Interactive Investor, said: “EasyJet is in good shape at the moment.”

But he added: “Investing in airline stocks has always been challenging and the events of the past week have shown how external factors can undermine progress.”

Despite the upbeat outlook from bosses, investors in the airline remained spooked, with shares in EasyJet falling 7%, or 30.5p, to 406.3p

Shares remain down 56% over the past five years.

The company is forecasting a 15% annual increase in flight capacity for the final three months of this calendar year, at higher prices.