EasyJet Stays on Course Despite £394M Loss in H1

Strong demand, cost savings, and holiday bookings support full-year profit outlook

EasyJet Reports First-Half Loss In Line with Forecasts

EasyJet (LON:EZJ) reported a headline pre-tax loss of £394 million for the six months ending 31 March 2025, matching market expectations. Despite the seasonal loss, adjusted results showed a modest improvement year-on-year when accounting for the late Easter.

The airline’s share price dipped over 3% following the announcement.

Passenger Growth Boosts Operational Performance

Capacity expanded by 12% year-on-year, driven by a 6% rise in both seats and sector length. These increases helped to boost operational efficiency:

• Crew productivity: Up 6%
• Aircraft utilisation: Up 5%

However, revenue performance was impacted by timing effects and route expansion. Revenue per Available Seat Kilometre (RASK) dropped 6%, primarily due to the Easter shift and a strategic push into longer-haul leisure destinations.

Cost Reductions Support Margins

On the cost side, EasyJet delivered solid performance:

• CASK (excluding fuel): Down 4%
• Fuel CASK: Down 8%
• Total CASK: Down 5%

This reflects the company’s continued focus on operational efficiency and cost control.

EasyJet Holidays Delivers Strong Growth

EasyJet’s holiday business posted a first-half profit of £44 million—£13 million ahead of the prior year. The unit is forecasting approximately 25% growth in customer numbers for the 2025 financial year.

Key highlights include:

• 77% of H2 bookings already secured
• Forward bookings: 80% sold for Q3, 42% for Q4—both ahead of last year

CEO Kenton Jarvis remains upbeat:

“We continue to see strong demand for easyJet’s flights and holidays. We’re focused on delivering another record summer and driving strong earnings growth.”

Outlook: On Track for £703M Full-Year Profit

Despite the H1 loss, EasyJet reaffirmed its full-year profit target of £703 million and its medium-term ambition to exceed £1 billion in annual pre-tax profit.

ASK (Available Seat Kilometre) growth is forecast at 8% for the full year, with a slight moderation to 6% in H2. Headline CASK excluding fuel is expected to stay broadly flat in the second half.

Analysts React: Steady Performance, Upside Potential

Jefferies analysts called the results “good enough” and maintained their earnings expectations. They highlighted:

• Upside potential from growing holiday sales, fleet renewal, and cost efficiency
• Strong balance sheet and net cash position, possibly paving the way for increased dividends

Barclays was more cautious, noting a softer revenue outlook compared to Ryanair but acknowledged strong performance in the holidays and cost segments.

Final Thoughts

EasyJet’s solid operational improvements, growing holiday division, and strong forward bookings indicate a well-positioned business heading into the peak travel season. While revenue pressures persist, the airline remains on track to meet its full-year targets and long-term growth ambitions.

Sources: (Investing.com, Reuters)