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Highlights

  • Capacity and passenger numbers increase in first quarter
  • Summer bookings strengthen with record January demand
  • Citi upgrades rating with 600p target price

 

easyJet Plc (LSE:EZJ) maintained its full-year guidance after first-quarter trading met expectations, with higher passenger volumes and growing demand for summer travel helping to offset a wider seasonal loss.

First-quarter operating performance

Available seat kilometres (ASK) rose 9% year on year in the three months to December. Passenger numbers increased 7%, while the load factor improved by two percentage points to 90%.

The headline loss widened to £93 million compared with £61 million in the same period a year earlier, primarily due to investment in two Italian airports.

The airline traditionally generates the majority of its annual profit in the second half of the financial year.

Holidays division and capacity targets

The company continues to target around 7% ASK capacity growth for the full year.

easyJet holidays is expected to deliver customer growth of up to 15% from its current base of 3.1 million, reflecting continued demand for packaged travel.

Management said bookings for the summer season are building, supported by the largest January booking period in the airline’s history.

Strategy and customer focus

Chief executive Kenton Jarvis said ongoing investment in customer experience and operational punctuality had contributed to the quarter’s performance and continued demand across both flights and holidays.

Broker view and margin outlook

Citi upgraded easyJet to Buy, stating that the path for margins is expected to improve after a period in which higher airline costs offset growth in the holidays segment.

The broker expects margins to reach a low point in FY2026, with attention then shifting to FY2027 as fleet renewal begins to support the airline business. Citi set a target price of 600p.

Outlook

The airline left its full-year expectations unchanged, citing steady demand, planned capacity growth and continued expansion of its holidays business.

Share price update

easyJet shares were last trading at 486.70p, up 1.60p or 0.33%, as of 17 February, 2026.

Frequently Asked Questions (FAQs)

1. Why did easyJet’s first-quarter loss widen?

The headline loss increased to £93 million mainly due to investment in two Italian airports.

2. What is easyJet’s full-year capacity target?
The airline is targeting annual ASK capacity growth of about 7%.

3. What is the latest broker view on easyJet?
Citi has upgraded the stock to Buy with a target price of 600p.