(Bloomberg) -- EasyJet Plc said airline ticket prices are holding up during the crucial summer period, providing a contrasting outlook to discount rival Ryanair Holdings Plc, which warned this week of a notable decline in airfares.
Yields for the peak travel season are broadly flat year on year as bookings continue to build, the budget carrier said Wednesday as it reported results for the fiscal third quarter. Capacity for the first quarter of next year is up about 5%, with 20% of the program already sold, the airline said.
EasyJet follows Ryanair’s earnings report, in which the Irish carrier cut its outlook for summer ticket prices, saying fares will be “materially lower” as consumers pull back on spending. Deutsche Lufthansa AG, Qatar Airways, and Delta Air Lines have also cautioned of pressure on fares.
Airlines generate most of their money in the busy summer period as people jet off on vacation. Capacity constraints led many carriers to believe that fares would be higher, but consumers have shown less willingness to spend on airfares than last year, when the industry enjoyed a rush after the pandemic.
EasyJet is “on track to deliver another record-breaking summer,” Chief Executive Officer Johan Lundgren, who will step down in early 2025, said in a statement. The carrier reported profit before tax of £236 million ($304 million) for the third quarter, up £33 million from last year.
Easyjet surged as much as 9.7% in London trading, reversing a sharp drop from earlier this week after Ryanair’s subdued outlook. Before today, the shares had fallen about 16% so far this year, less than the 29% decline at Ryanair and compared with a 10% drop at Wizz Air Holdings Plc, which will report earnings next week.
(Updates with share price performance in last paragraph)
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