EasyJet has reported "strong" full-year results, but has warned that a number of factors may affect the outlook of its current quarter.

The airline revealed that its earnings before interest and tax for its financial year to the end of September came in at £496m, £23m over analysts’ predictions. However, the firm did record a loss of £27m per year.

Total revenue also grew by 42% to almost £8.2bn compared to 2022, with the airline attributing this to pricing strength, increased flown capacity, improved load factors and the continued growth of easyJet holidays.

Passenger revenue reached £5.2bn for the group in the 2023 financial year, compared to £3.8bn in 2022.

Despite the results, easyJet has warned that geopolitical instability, inflation and other economic issues have led to a subdued outlook, with some investors warning that profits may have peaked, Reuters has reported.

In a statement, the airline said: "Early winter results for FY24 will see an impact from the conflict in the Middle East, which started on 7 October. In our planned winter schedule, flights to Israel, Jordan (both temporarily paused) and Egypt represented 4% of capacity and 10% ASKs.

"Additionally there was a broader impact on near term flight searches and bookings across the industry, though this seems to be coming back with a recent improvement in trading. Accordingly, despite positive underlying strength, easyJet does not currently expect its Q1 loss to improve year on year. The present booking strength for summer 2024, coupled with supply constraints in Europe, provide a positive outlook for the year as a whole."

Chief executive officer at EasyJet, Johan Lundgren, added: "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."

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