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Highlights

  • easyJet reported a pre-tax loss of £394 million for H1, 9% wider year-on-year, but aligned with strategic investments and Easter timing.

  • Revenues grew 8% to £3.5 billion, driven by a 29% surge in its holidays division.

  • The airline expects record summer earnings, supported by strong demand, 80% Q3 bookings, and ongoing fleet and route expansion.

Budget airline easyJet PLC (LSE:EZJ) reported first-half losses slightly above expectations but maintained confidence in hitting full-year market forecasts, citing strong demand for summer travel and robust growth in its holidays segment.

The headline pre-tax loss for the six months to 31 March 2025 came in at £394 million, representing a 9% increase compared to the same period last year. However, the company noted that the loss was in line with internal expectations when adjusted for the timing of Easter and investments in expanding longer-haul leisure destinations.

Revenue Growth Amid Strategic Expansion

Revenue rose 8% year-on-year to £3.5 billion, bolstered by a 29% jump in sales from easyJet Holidays. Passenger revenue increased by 5%, while ancillary income grew 7%. The holidays unit generated a £44 million profit, up from £31 million last year, with forward bookings for the second half already 77% sold.

Available seat capacity increased by 12%, driven by a 6% increase in the number of seats and longer average flight distances. However, Revenue per Available Seat Kilometre (RASK) dropped 6%, attributed to strategic expansion into longer routes and Easter's impact on travel patterns.

On the cost front, Cost per Available Seat Kilometre (CASK) decreased 5%, with fuel CASK down 8% and CASK excluding fuel down 4%.

Summer Bookings and Expansion Plans

easyJet is upbeat about the summer season, with 80% of Q3 and 42% of Q4 seats already booked, both ahead of last year’s levels. The airline expects ASK (Available Seat Kilometre) capacity to grow by around 8% for the full year, while CASK excluding fuel is projected to remain flat.

CEO Kenton Jarvis reaffirmed easyJet's ambition to generate over £1 billion in sustainable annual profit before tax, stating:

“We remain focused on delivering another record summer this year, expecting to drive strong earnings growth.”

The airline continues its expansion strategy, launching new operational bases in Southend, Milan Linate, and Rome Fiumicino. A fourth base in Newcastle is set to open in 2026. easyJet is also pushing ahead with fleet modernisation, having taken delivery of nine A320neo aircraft this year, aiming for over £3 per unit in cost savings by 2028.