EasyJet cuts losses but faces global Q2 revenue challenges

EasyJet has reported a smaller Q1 loss of £40 million compared to £117 million a year earlier, benefiting from easing fuel costs and strong demand for flights and holiday packages.

The airline, however, saw its shares drop by 3% due to weaker revenue expectations for Q2, attributed to increased capacity on longer leisure routes and Easter falling in Q3 this year. Despite this, summer demand looks robust, with one million more customers already booked.

CEO Kenton Jarvis reaffirmed EasyJet’s profit guidance for the year and its £1 billion medium-term pretax profit target, with analysts maintaining a £709 million pretax profit forecast for FY25. The airline’s holiday business is expected to grow by 25%, and EasyJet will receive all nine planned new Airbus aircraft, supporting capacity growth.

Plans to resume limited flights to Tel Aviv in June further highlight optimism amid easing geopolitical tensions.

Myles Corey, founder of Spaero, remarked, “EasyJet’s ability to reduce losses while navigating capacity challenges and geopolitical uncertainty highlights smart prioritisation in a tough market.”

Source: Reuters