Passenger revenue at the low-cost airline rose 5% but headline costs including fuel also increased, up 9% on year.
easyJet's holiday package business, easyJet Holidays, offers significant growth potential by providing seamless, cost-effective travel solutions, appealing to a diverse customer base. The holiday package model leverages bulk purchasing and high service standards to attract both low-income and high-income travelers, ensuring resilience in various economic conditions. easyJet has grown its holiday market share from 2% to 7% since 2019, with higher margins than competitors, indicating strong demand and competitive pricing.
EasyJet remains a Buy due to positive summer booking trends despite tariff challenges and a strong balance sheet. Q1 2025 PBT loss of £40 million was better than expected, showing improvement from last year's £126 million loss, with further margin improvements anticipated. Expansion at London's Luton Airport and reduced fuel costs are expected to boost EasyJet's profitability and shareholder returns in the near term.
easyJet showed strong Q1 performance with rising passenger numbers, revenue, and load factors, despite recent stock volatility. The Holidays division, ancillaries, and strategic capacity expansion will be key drivers for future margin growth and market share gains. For FY25, we project a sales to grow by 9.0% and diluted EPS of 70.2p, as higher capacity and rampant travel demand boosts margins and revenue potential.
easyJet Plc's holiday packages business shows significant growth, with revenues up 36%, helping offset winter airline losses and indicating future profitability potential. Despite a 3% stock decline since my buy rating in April 2023, easyJet remains significantly undervalued, with a price target of $16. Risks include fuel price fluctuations, air traffic control delays, and increased competition in the holiday package market, but opportunities in fuel-efficient aircraft and holiday revenues persist.
easyJet PLC is set to cut back on domestic flights in response to an increase in air passenger duty, announced in last month's Budget. Routes from London to Scotland and Northern Ireland would be worst affected, chief financial officer Kenton Jarvis signalled on Thursday.
City analysts roundly agreed that budget airline easyJet plc's yearly revenues came in slightly below expectations, but this was sufficiently offset by superior profit metrics. The FTSE 100-listed carrier's pre-tax profit soared 34% to £610 million over the year to September on the back of a 14% increase in revenue to £9.31 billion.
EasyJet shares increased by 2% on Wednesday as the low-cost airline reported a 34% increase in its pre-tax profits
EasyJet on Tuesday said it made a record £3.59 billion ($4.5 billion) from charging passengers for flight add-ons such as extra baggage in the full-year to October. CEO Johan Lundgren told CNBC that a recent fine issued by Spain's Ministry of Consumer Rights over such charges was "highly unfair," adding that the practice kept fares low.
EasyJet CEO Johan Lundgren discusses the low-cost airline's full-year results and market trends.
easyJet PLC has said profit surged by more than a third over the year following a record summer period and boom in its holiday business. Reported pre-tax profit soared 34% to £610 million over the year to September on the back of a 14% increase in revenue to £9.31 billion, the airline reported on Wednesday.
Full-year figures from easyJet will be in focus on Wednesday, alongside updates from the likes of Pets at Home.