easyJet reinstates dividend after returning to annual profit

easyJet has reported its first annual profit since the Covid-19 pandemic.

For the 12 months to 30 September 2023 the low-cost airline recorded headline profit before tax of £455m, compared with a loss of £178m in 2022 — an improvement of £633m year-on-year. This included record profit before tax in the second half of the year.

The strong performance was achieved despite challenges including high fuel costs, air traffic control strikes and the UK air traffic system failure at the end of August.

Based on its results for the year, easyJet has announced its first dividend payout to shareholders since the pandemic. The company will pay a final dividend of 4.5p per share, amounting to £34m, in early 2024.

Chief executive Johan Lundgren said: “Our record summer performance demonstrates the success of our strategy and that demand for easyJet remains strong as customers choose us for our network and value.”

Bookings in the current financial year are ahead of last year and the airline’s outlook is positive. However, earnings will be impacted by the conflict in the Middle East, with flights to Israel and Jordan temporarily paused.