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Highlights:

  • easyJet delivered Q3FY25 headline profit before tax of GBP 286 million, up GBP 50 million YoY.
  • The company saw a 0.5% increase in Q3 RASK and a 0.5% reduction in headline CASK
  • easyJet holidays recorded GBP 86 million Q3 PBT and expects over GBP 235 million for FY25

easyJet plc (LSE:EZJ) has announced its trading update for the third quarter of the financial year 2025 (Q3 FY25), reporting a headline profit before tax (PBT) of GBP 286 million, a year-on-year increase of GBP 50 million. The result was in line with company expectations and supported by favourable timing of Easter and continued demand across its core network. During the quarter ended 30 June 2025, available seat kilometres (ASK) capacity increased by 7.9% year-on-year, while total seats grew by 2.0%. The average sector length rose by 5.8%, contributing to marginal improvements in revenue per available seat kilometre (RASK), which increased by 0.5% compared to the same period last year. Passenger numbers rose by 2%, with load factor improving by 0.2 percentage points. Headline total cost per available seat kilometre (CASK) decreased by 0.5% year-on-year, driven by a 7.3% reduction in fuel-related CASK. However, headline CASK excluding fuel increased by 2.3% due to higher operational costs and additional disruption-related expenses.

easyJet holidays, the group’s holiday segment, contributed headline PBT of £86 million in Q3, an increase of £13 million year-on-year. The business remains on track to exceed GBP 235 million in profit for the full year, with Q4 holiday capacity 85% sold as of the latest update. Operational performance in the quarter improved following a series of resilience initiatives, resulting in a four-percentage-point improvement in both on-time performance and customer satisfaction metrics. However, the airline flagged material disruption caused by French air traffic control (ATC) strikes in early July, which resulted in unexpected costs of approximately GBP 15 million. An additional GBP 10 million in fuel-related costs was also noted due to rising prices.

Looking ahead to the remainder of FY25, the group expects ASK capacity to increase by approximately 9% year-on-year, with a more moderate growth rate in the second half (+7%) compared to the first half (+12%). Fourth-quarter seat capacity is currently 67% sold, up one percentage point year-on-year. The company acknowledged that full-year results will remain sensitive to the pace of late summer bookings and pricing trends. Fourth-quarter RASK is expected to reflect the trends seen in Q3, adjusting for the impact of Easter timing. Factors influencing revenue performance include investments in key airports such as Milan Linate and Rome Fiumicino, ongoing geopolitical concerns affecting demand to certain destinations, and a continued shift toward later booking behaviour among customers.

On the cost side, easyJet maintains its expectation for a low single-digit reduction in total headline CASK for FY25. CASK excluding fuel is forecast to be broadly flat year-on-year. For the second half, non-fuel CASK is expected to increase slightly due to slower capacity growth and continuing ATC-related challenges. Meanwhile, fuel CASK for H2FY25 is anticipated to decline by around 7% year-on-year. For FY26, early indicators suggest continued growth. Around 19% of Q1 FY26 airline seat capacity is already sold, up one percentage point from the prior year, while easyJet holidays is 50% sold for the same period.

CEO Kenton Jarvis noted the impact of operational improvements during Q3 but expressed concern over the ATC strike disruptions. He reiterated that easyJet holidays remains on track to exceed its FY25 target and that the Group remains focused on maintaining performance despite external challenges.

EZJ is trading at 6.67% lower at GBX 490.75 per share as on 17 July 2025.