easyJet plc (LON:EZJ) has announced its results for the six months ending 31 March 2025.
Attractive earnings growth expected for FY25, driven by a slight YoY improvement in winter result1, alongside a positive demand outlook for summer supported by constrained H2 capacity growth
· H1 headline loss before tax was £394 million, in line with consensus2. A slight improvement YoY when adjusted for the timing of Easter (c.£50m)3 and one-offs netting out4
– ASK Capacity increased by 12% YoY with both seats & sector length increasing 6% YoY, driving crew productivity and aircraft utilisation
– H1 RASK decreased 6% YoY, Q2 being impacted by the timing of Easter and important strategic capacity investments into longer leisure destinations. We anticipate route maturity in the upcoming winter and beyond
– H1 CASK ex fuel reduced by 4% YoY, and fuel CASK reduced by 8% YoY driving total CASK down 5% YoY
– easyJet holidays delivered a £44 million profit, +£13 million YoY
· Positive outlook for FY25: Current bookings are supportive of performance meeting FY25 consensus2
– Expect FY25 ASK growth of c.8% YoY, with less pronounced growth in H2 (+6%) vs H1 (+12%)
– FY25 Headline CASK ex fuel expected to be broadly flat YoY
– Forward bookings; Q3 80% sold, +0.5ppts YoY; Q4 42% sold, +2.2ppt YoY
– easyJet holidays expects c.25% customer growth YoY
o Forward bookings; H2 77% sold
· On track to achieve medium term target of >£1bn PBT
– Capacity investments are driving productivity and utilisation benefits, providing a platform to structurally reduce winter losses and further grow our profitable summer period
– Fleet modernisation is expected to deliver >£3 unit cost savings to the Group
o Average gauge expected to increase to 191 by FY28
o Book value of owned assets (£4.6bn) to strengthen more than 60% by FY28
– easyJet holidays is on track for early delivery of the medium term target of >£250m PBT
Kenton Jarvis, CEO of easyJet, commenting on the results said:
“We continue to see strong demand for easyJet’s flights and holidays, as we attract more customers through our great fares, friendly service and unrivalled network of destinations.
“We are executing well against our strategy, to drive efficiency and enhance our customer experience both in the sky and on the ground. In addition, our commitment to giving customers an even greater choice of flights and holidays will also see us continuing to grow both in Europe and the UK, where we will be launching a new base in Newcastle from next spring.
“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.”
Overview
Investments in capacity during the first half have driven gains in crew productivity (+6%) and asset utilisation (+5%), contributing to a slight improvement in our first half result when adjusted for the timing of Easter (c.£50m). These investments drove CASK ex fuel to decrease by 4% year-on-year, despite inflationary pressure and additional resilience measures to manage increasing ATC delays as part of our ramp up preparations for the summer period. We achieved a strong performance in the December quarter, which led to a £65 million year-on-year improvement, marking significant progress towards profitability for this quarter. However, the seasonally challenging March quarter faced impacts due to the timing of Easter and the necessity for some price stimulation, following our important capacity investments resulting in a 14% growth in ASKs during the period. We anticipate route maturity in the upcoming winter and beyond to further improve these winter losses. We saw a strong financial performance in April reflecting the shift in Easter this year.
As we move into this summer, the capacity environment is more constrained, with easyJet’s expected seat growth at c.1%. We continue to see a positive build in demand for easyJet’s flights and holidays this summer, with booked load factors ahead year-on-year for both Q3 and Q4. In response to last year’s deteriorating ATC performance, we have implemented measures to enhance resilience across our network. These actions have led to positive operations in April, with on-time performance increasing by two percentage points year-on-year. We have opened three new bases in Southend, Milan Linate, and Rome Fiumicino ahead of this summer. All nine expected A320neo family aircraft have now been delivered and are part of our fleet ahead of the summer season.
easyJet holidays is on track for early delivery of the medium term target of >£250m PBT, with c.25% customer growth this year, accompanied by strong customer satisfaction scores of 84%. The attachment rate has increased but is still only 6%, meaning substantial growth opportunities remain. This winter, we successfully launched new destinations such as Cape Verde and Luxor alongside adding a new partnership with Tesco Clubcard, providing access to 23 million UK households.
We are the best ESG rated European airline from Sustainalytics6 (score of 21.4). We hold a best in class rating from MSCI6 (AA rating) and CDP6 (A- rating), and we also retain our position in FTSE4Good for a second year running. The efficiencies which we have ahead of us will only strengthen our position.
We are also working to stimulate the growth of the SAF industry, via the launch of our corporate SAF offer to enable airlines and corporate organisations to share the cost of SAF.
Outlook
· Current bookings are supportive of performance meeting FY25 consensus2, although remain mindful that, consistent with this stage each year, there is still an important booking period for peak summer to go
· Forward bookings; Q3 80% sold, +0.5ppts YoY; Q4 42% sold, +2.2ppts YoY
– Strong April reflected the shift in Easter
· Cost control
– FY total CASK expected to reduce by low single digits YoY
o FY’25 Headline CASK ex Fuel expected to be broadly flat YoY
§ H2’25 Headline CASK ex fuel to be slightly up YoY as capacity growth is lower than H1’25
§ H2’25 fuel CASK to reduce by c.8% YoY, based on recent fuel trends
· easyJet holidays expects c.25% customer growth YoY
– Bookings; H2’25 77% sold
· Expect ASK capacity growth of c.8% in FY25
– FY25 Seat capacity growth expected to be c.3% YoY to c.103 million seats (H1 45 million, H2 c.58 million)
– H2’25 seat capacity expected to be c.1% YoY and ASK’s to be c.6% YoY, substantially lower growth than H1’25 (+12% YoY)
· New base openings:
– FY25: Southend (+3 Aircraft), Milan Linate (+5 Aircraft), and Rome Fiumicino (+3 Aircraft)
– FY26: Newcastle (+3 Aircraft)
Fuel & FX Hedging
| Jet Fuel | H2’25 | H1’26 | H2’26 | USD | H2’25 | H1’26 | H2’26 | |
| Hedged position | 83% | 59% | 31% | Hedged position | 76% | 58% | 31% | |
| Average hedged rate ($/MT) | 750 | 717 | 694 | Average hedged rate (USD/GBP) | 1.28 | 1.28 | 1.27 | |
| Current spot ($/MT) at 20.05.25 | c.675 | Current spot (USD/GBP) at 20.05.25 | c.1.33 | |||||
o Carbon obligation including free allowances
o 100% covered for CY25 at €45/MT
o USD Lease payments hedged for the next three years at 1.25
o Capex hedged for the next 12 months in EUR & USD
Capacity
During Q2 easyJet flew 20.8 million seats. In the same period last year easyJet flew 19.3 million seats. Load factor was 87.5% (Q2 FY24: 87.2%).
Passenger numbers in the quarter increased to 18.2million (Q2 FY24: 16.8 million).
| January 2025 | February 2025 | March 2025 | Q2FY25 | Q2FY24 | Variance favourable/ (adverse) | |
| Number of flights | 30,913 | 38,461 | 45,250 | 114,624 | 107,214 | 7% |
| Peak operating aircraft | 293 | 289 | 311 | 311 | 297 | 5% |
| Passengers (thousand) | 4,879 | 6,157 | 7,199 | 18,235 | 16,844 | 8% |
| Seats flown (thousand) | 5,633 | 6,998 | 8,212 | 20,843 | 19,324 | 8% |
| Load factor | 86.6% | 88.0% | 87.7% | 87.5% | 87.2% | 0.3ppt |
Financial Summary
| H1’25 | H1’24 | Variance favourable/ (adverse) | |
| Passenger revenue (£’m) | 2,156 | 2,046 | 5% |
| Airline ancillary revenue (£’m) | 978 | 911 | 7% |
| Holidays revenue5 (£’m) | 400 | 311 | 29% |
| Group revenue (£’m) | 3,534 | 3,268 | 8% |
| Fuel costs (£’m) | (949) | (914) | (4)% |
| Airline headline EBITDA costs ex fuel (£’m) | (2,227) | (2,053) | (8)% |
| Holidays EBITDA costs5 (£’m) | (363) | (286) | (27)% |
| Group headline EBITDA costs (£’m) | (3,539) | (3,253) | (9)% |
| Group headline EBITDA (£’m) | (5) | 15 | (133)% |
| Airline depreciation & amortisation (£’m) | (359) | (352) | (2)% |
| Holidays depreciation & amortisation3 (£’m) | (5) | (3) | (67)% |
| Group headline LBIT (£’m) | (369) | (340) | (9)% |
| Airline financing costs excluding balance sheet revaluations (£’m) | (31) | (13) | (138)% |
| Airline balance sheet revaluations (£’m) | (6) | (6) | 0% |
| Holidays financing costs (£’m) | 12 | 9 | 33% |
| Group headline LBT (£’m) | (394) | (350) | (13)% |
| Airline passenger RASK (p) | 3.88 | 4.14 | (6)% |
| Airline ancillary RASK (p) | 1.76 | 1.84 | (4)% |
| Total airline RASK (p) | 5.64 | 5.98 | (6)% |
| Total airline revenue per seat (£) | 69.78 | 69.87 | (0)% |
| Airline headline CASK ex fuel (p) | (4.72) | (4.90) | 4% |
| Airline Fuel CASK (p) | (1.71) | (1.85) | 8% |
| Airline total headline CASK (p) | (6.43) | (6.75) | 5% |
| Airline total headline cost per seat (£) | (79.55) | (78.88) | (1)% |
| Sector length (km) | 1,237 | 1,168 | 6% |
| Available seat kilometres (ASK) (millions) | 55,570 | 49,421 | 12% |
| Cash and other cash investments (£’m) | 3,622 | 3,332 | 9% |
| Net cash * (£’m) | 327 | 146 | 124% |
* Net cash has increased year on year due to increased unearned revenue from forward bookings to date, partly offset by the final delivery payments for 15 aircraft deliveries over the last 12 months (eight in the current six month period to 31 March 2025) and pre-delivery payments for future aircraft deliveries.
1) When adjusted for the timing of Easter
2) Internally compiled consensus for FY25 Headline PBT is £703 million (H1: £(394) million) as at 21 May 2025)
3) Following the close out of April the Easter impact was stronger than originally estimated
4) Prior year aged balance release (£34m) nets out with current year aged balance release (£15m) and other small one-offs
5) easyJet holidays numbers include elimination of intercompany airline transactions
6) MSCI and Sustainalytics score as at September 2024 and CDP score as at January 2024
