EasyJet has reinstated its dividend for the first time since the pandemic and returned to profitability following a £633million improvement in pre-tax profit.

The airline reported £455m in pre-tax profit for the year ending September 30, as the easyJet holidays division grew 221%, returning pre-tax profits of £122m.

The company has also announced a £34m payout, equivalent to about 4.5p a share, and is remaining upbeat despite concerns over next year's outlook due to conditions in the Middle East.

Johan Lundgren, easyJet's Chief Executive Officer, 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.

"We see a positive outlook for this year with airline and holidays bookings both ahead year on year and recent consumer research highlights that around three quarters of Britons plan to spend more on their holidays versus last year with travel continuing to be the top priority for household discretionary spending.

"We are confident about the future and the opportunity ahead, focusing on capital discipline and driving our low cost model to achieve our ambitious medium term targets."

Have profits peaked?

The carrier says early booking for Q2-Q4 in the next financial year are positive, though warns of losses in the first quarter.

Flights to Israel and Jordan, which represent 4% of capacity, have been temporarily paused following the outbreak of conflict in the Middle East a week into the new financial year.

Last years £133m loss in Q1 isn't expected to be improved upon, though the company insists the outlook for the year remains positive.

FTSE 100

The UK's flagship share index, the FTSE100, was down 26-points at 7,434 shortly after opening this morning.

Meanwhile, Brent crude futures were up 0.25% at $80.18 a barrel this morning.

Companies reporting today

easyJet – Full year results

Pets at Home – Q2 trading statement

Safestore Holdinds – Q4 trading statement

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