EasyJet returns to annual profit, but lags Ryanair on growth and margin

EasyJet returned to profit in the year ended Sep-2023 after suffering losses during the COVID-19 pandemic. Its FY2023 revenue was 28% above that reported for FY2019. However, its profitability - both in absolute numbers and in terms of margins - did not match its performance in its last pre-pandemic year, in FY2019.

EasyJet remains one of Europe's leading airline groups, and the continent's number two low cost carrier after Ryanair. However, its seat share on intra-Europe routes is lower in 2023 than in 2019. Moreover, while Ryanair has resumed its pre-pandemic growth path, easyJet is not yet back to its 2019 passenger numbers.

Ryanair was approximately 50% bigger than easyJet by passenger numbers before the COVID-19 pandemic, whereas it now has more than twice easyJet's traffic.

Unit cost and unit revenue have risen for all operators since COVID-19. However, easyJet now has only a 7% discount to Lufthansa Group's network airlines' revenue per passenger on Europe routes, compared with Ryanair's discount of 36%.

Ryanair's low costs and low fares are not only driving stronger traffic, but also better profit margins than easyJet.