EasyJet posts in-line pre-tax loss in H1, on track to meet its profit targets

Investing.com -- easyJet (LON:EZJ) posted a headline pre-tax loss of £394 million for the six months ending 31 March 2025, in line with consensus expectations. Adjusting for the late Easter, the result reflects a modest year-on-year improvement.

Still, the company’s shares fell more than 3% after the print as of 08:47 GMT. 

Capacity grew 12% year-on-year, with a 6% increase in both seats and sector length. This supported gains in crew productivity and aircraft utilisation, up 6% and 5% respectively.

Revenue performance came under pressure, with Revenue per Available Seat Kilometer (RASK) down 6% due to the timing of Easter and strategic expansion into longer-haul leisure routes. On the cost side, performance was more robust. Cost of Available Seat Kilometer (CASK) excluding fuel declined 4%, while fuel CASK dropped 8%, resulting in a total CASK reduction of 5%.

easyJet holidays delivered a profit of £44 million in H1, £13 million ahead of last year. The business expects around 25% customer growth for fiscal year 2025 (FY25), with 77% of second-half bookings already secured.

The outlook remains firm. Current bookings are supportive of meeting FY25 consensus targets, with full-year ASK growth expected at 8%. The company forecasts H2 growth to moderate to 6% after 12% in H1. Headline CASK ex-fuel is expected to remain broadly flat.

Forward bookings show Q3 80% sold and Q4 at 42%, both ahead of last year.

EasyJetCEO Kenton Jarvis highlighted continued market momentum: “We continue to see strong demand for easyJet’s flights and holidays.”

"We remain focused on delivering another record summer this year, expecting to drive strong earnings growth," he added. 

The company reiterated its target of generating over £1 billion in annual pre-tax profit over the medium term, and remains on track to meet its target of £703 million in pretax profit this year.

Jefferies analysts said EasyJet’s results are "good enough," adding that consensus estimates "should be unchanged today."

"We see a re-rating opportunity as easyJet benefits from a growing package holiday business, fleet renewal and self help opportunities through optimising winter trading and ancillaries. The strong balance sheet and net cash position leaves room for upside to dividends in the next two years," analysts led by Jaina Mistry added.

Separately, Barclays (LON:BARC) analysts said the outlook for EasyJet remains "reasonable, costs and holidays look good, but revenue commentary more cautious than Ryanair."

"EasyJet comps are tougher, May softens with late Easter, but loads are ahead and Easter was good. Company is comfortable with flat 2H RASK. Is it the central expectation? This is the core debate today," they added.