easyJet Surges Past Profit Forecasts Despite Shares Dipping

Stronger earnings, robust demand and expanding capacity put the airline on track to meet its medium-term goals

easyJet has delivered a better-than-expected set of annual results, beating profit forecasts and strengthening its position going into 2025 — even as shares slipped in early London trading. The low-cost carrier reported another quarter of resilient demand, improved cost control and strong performance from its expanding holiday division.

Profit Beat Caps Strong Year for the Budget Airline

easyJet’s fiscal fourth quarter delivered headline pretax profit of £773 million, an increase from £724 million a year earlier. That result outpaced consensus expectations of £763.6 million.
Revenue also rose 7.2% to £3.65 billion, supported by a 4.4% increase in passenger revenue to £2.16 billion.

25 11 2025 easyJet beats profit…

Key operational highlights included:

• Load factor rising to 92.4%, up from 92.2%.
• Full-year pretax profit increasing to £658 million from £602 million.
• Total annual sales up 9% to £10.1 billion, in line with forecasts.
• Headline operating profit for the full year reaching £703 million, beating analyst expectations of £669 million.

Revenue per seat remained broadly steady at £83, while unit costs excluding fuel continued to decline — a key driver behind the full-year beat.

Holidays Business Continues to Shine

easyJet holidays, now one of the group’s most profitable divisions, again delivered strong performance.

• Holiday revenue came in roughly in line with expectations.
• The division is expected to grow customer numbers by around 15% in fiscal 2025, up from a base of 3.1 million.
• The business has already hit its original medium-term target of £250 million pretax profit and is now projected to reach £450 million by 2030.

This momentum has made the holidays segment a cornerstone of easyJet’s long-term strategy, providing a more stable revenue stream than seat-only fares.

Looking Ahead: Capacity Growth and Strong Bookings

The airline laid out ambitious plans for fiscal 2025:

• Capacity expansion of around 7% year-on-year.
• A projected 3% decline in revenue per available seat kilometre (RASK).
• A 1% reduction in cost per available seat kilometre (CASK) excluding fuel.
• Forward bookings for Q1 at 81%, two percentage points ahead of last year.

Analysts at Morgan Stanley said the airline delivered a full-year beat driven by better-than-expected cost management and holidays performance, noting supportive early booking trends and more favourable pricing conditions expected from Q2.

Shareholder Returns: Dividend Raised

easyJet’s board has proposed a dividend of 13.2p per share, an increase from 12.1p the previous year, signalling confidence in future earnings strength.

CEO: Airline is “Well Placed” for Growth

CEO Kenton Jarvis struck an optimistic tone, saying the airline is “well placed to seize the significant opportunities ahead” and reaffirming the company’s medium-term ambition of delivering over £1 billion in pretax profit.

A Strong Platform for 2025

Despite the slight drop in shares, easyJet’s underlying performance remains robust. With expanding capacity, strengthening holiday revenues and improving cost efficiency, the airline appears poised to continue its recovery and deliver on its ambitious medium-term targets.

Sources: (Investing.com, Reuters.com)