EasyJet losses increase due to later Easter and holiday investments
Published: 07:45 22 May 2025 BST
Budget airline easyJet PLC (LSE:EZJ) posted first-half results showing losses slightly larger than expectations but said current bookings put it on course to hit full-year market forecasts.
The FTSE 100 company reported a headline loss before tax of £394 million for the six months to 31 March. This was 9% larger than the loss seen a year ago but marks a slight improvement when adjusted for Easter timing and investments into longer leisure destinations.
Available seat capacity grew 12% year-on-year, supported by a 6% increase in both seats and the length of flights.
Revenue rose 8% to £3.5 billion as sales from its holidays arm rose 29%, with a 5% increase in passenger revenue and 7% from ancillary items.
Revenue per available seat kilometre (RASK) fell 6% due to Easter timing and strategic investments in longer routes, total cost per kilometre (CASK) decreased 5%, with CASK excluding fuel down 4% and fuel CASK down 8%.
The holidays business delivered a £44 million profit, up from £31 million, supported by 25% expected customer growth this year. Forward bookings for holidays in the second half are 77% sold.
CEO Kenton Jarvis said easyJet continues to see "strong demand" for flights and holidays. "We remain focused on delivering another record summer this year, expecting to drive strong earnings growth as we continue to progress towards our target of sustainably generating over £1 billion of annual profit before tax.”
For the full year, easyJet expects ASK capacity growth of around 8% and flat CASK ex fuel. The third quarter is 80% booked and the fourth is at 42%, both ahead of this time last year.
New bases in Southend, Milan Linate and Rome Fiumicino have been launched this year, with a fourth, in Newcastle, planned for 2026, while fleet modernisation is continuing with nine A320neo aircraft delivered and a cost saving of over £3 per unit targeted by 2028.
