The City welcomed the results, which the airline described as “robust” in light of the challenges from terrorism concerns.
The carrier saw a profit loss of £24 million, but total revenue increased to £1,771 million up 0.3% from £1,767 million in 2015, while passengers grew to 31 million. Revenue per seat decreased by 6.6% on a reported basis to £51.29.
EasyJet also saw its biggest ever ski season, with a 40% share of the UK ski market.
Shares in the airline rose 3.8% yesterday ahead of the interim results although they remain 20% lower in general due to January’s warning that the Paris and Brussels terror attacks and suspension of Sharm el Sheikh flights had hit revenues.
Commenting on the results, Carolyn McCall, easyJet chief executive, said: “EasyJet has delivered a robust financial performance during the half year despite the well-publicised external events.
"Underlying consumer demand has been strong with UK beach traffic providing a healthy start to the half and easyJet’s biggest-ever ski season helping to deliver increased passenger numbers and higher revenue during H1.
"Consumers have enjoyed lower fares, which have decreased by 6% year-on-year, the second successive year of falling fares, as the benefits of lower fuel costs are passed on to passengers. Active cost control by the airline has helped maintain margins.
"We are confident that over the full year we will again grow passenger numbers, revenue and profit. As a result of easyJet balance sheet and the board’s confidence in the future success of the business, the annual dividend payout ratio will increase by a quarter to 50% subject to AGM approval.”
Joshua Raymond, market analyst at FX Broker at XTB.com, added: “On the whole this is a good report considering the impact of terrorism related events across Europe.
“It seems passengers are turning a blind eye to heightened tensions relating to terrorism offences to take advantage of cheaper flight tickets thanks to firms like easyJet passing on savings from a lower oil price to its customers. This makes the outlook for short-haul strong in the near term.”
Shares in the company rose by 2% to £15.00 in early trading.
