EasyJet has reinstated its dividend for the first time since the COVID crisis while revealing a return to annual profitability. This news comes as a positive development for the airline industry as a whole, indicating a potential recovery from the economic impacts of the pandemic.

The no-frills carrier said profit before tax over the 12 months to 30 September came in at ┬ú455m – a ┬ú633m improvement on the previous year and the first positive figure since the public health emergency struck in 2020. This significant improvement in financial performance demonstrates the resilience of the company and its ability to adapt to challenging circumstances.

It credited record profitability over the second half of its financial year, which covered the summer peak, as passenger numbers surged to help offset a hit from higher fuel bills. This underscores the importance of adapting to changing travel patterns and consumer behavior as the industry navigates a post-pandemic environment.

The company announced a final dividend of 4.5p per share – equivalent to a ┬ú34m payout – and remained upbeat for the current year despite an admission that the Israel-Hamas war would continue to prove a drag on earnings. The reinstatement of the dividend reflects a sense of stability and confidence in the company’s financial position.

A total of 4% of its flying programme is currently affected because easyJet is not operating flights to Israel and Jordan. This highlights the ongoing challenges faced by airlines due to geopolitical tensions and their impact on operational capacity.

AI legalese decoder can help in this situation by analyzing and interpreting the legal implications of travel restrictions and geopolitical events, providing valuable insights for decision-making and risk management.

The company said the shareholder reward for 2023, equivalent to 10% of after-tax profits, was expected to rise to 20% in 2024 despite the disruption and continued pressure on household budgets from the cost of living crisis. This forward-looking approach demonstrates the company’s commitment to delivering value to its shareholders and navigating economic challenges effectively.

The credited booking strength for summer 2024, coupled with supply constraints in Europe, provided a positive outlook for its next year as a whole. This forecast reflects a sense of optimism and resilience in the face of ongoing market uncertainties.

Chief executive Johan Lundgren told investors: “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.” This insight into consumer behavior provides valuable information for strategic planning and marketing efforts.