easyJet shares notched higher, gaining 0.8% to 350p on Thursday, as its first half financials landed in line with expectations, against a volatile backdrop of global markets, rising jet fuel costs and fears of economic downturn.
It reported a headline pre-tax loss of £552 million for the six months to 31 March, which was in keeping with prior guidance from April's trading update.
Available seat kilometre (ASK) capacity rose 8% year on year, passenger numbers were up 6% with a 90% load factor. Group revenue per available seat kilometre (RASK) increased 1% and total headline cost per available seat kilometre (CASK) rose 5%, including one‑offs and c.£25 million of additional fuel costs incurred in March.
easyJet holidays delivered £61 million headline pre-tax profit (PBT) with customer growth of 22% and the group expects holiday customers to grow by low double-digit percentages in FY26, with H2 76% sold.
“Despite conflict in the Middle East creating near‑term uncertainty, easyJet is well placed to manage the current environment, supported by one of the strongest investment‑grade balance sheets in European aviation,” Kenton Jarvis, chief executive, said.
The group said H2 headline CASK excluding fuel is expected to increase by low single digits. Fuel CASK remains uncertain, although 72% is hedged at $726/MT and every $100/MT movement equates to c.£35 million of fuel cost.
Seat capacity expected to grow
easyJet expects disciplined seat capacity growth of 3% in FY26, intends all A319s to be retired by FY29 and forecasts c.£250 million of incremental annual cost efficiencies across FY27 and FY28 from larger aircraft and fleet modernisation.
The balance sheet shows net cash of £434 million, access to £4.7 billion of liquidity, a net book value of owned assets of £5.0 billion and an expected owned-asset book value of over £7.5 billion by FY28.
Airline forward bookings are weaker than last year (H2 58% sold, -2ppts; Q3 79% sold, -1ppt but +1ppt since April), booked RASK to date is -4% YoY and Q4 is 40% sold (-3ppts) with ticket yield modestly up.
In March, the schedule review reduced seats by 0.3% for summer and redeployed capacity away from routes adjacent to the conflict, but the group intends to operate the full summer schedule on sale.
Buy rating repeated
Analysts at Panmure Liberum repeated a 'Buy' rating, and left a 440p target unchanged, whilst describing the interim numbers as broadly in line with forecasts.
The broker noted the airline showed top-line momentum and strong close‑in bookings but that passengers are hesitating to book ahead amid geopolitical and macro uncertainty, leaving forward bookings behind last year. Nevertheless, the broker also flagged forward booking trends and fuel‑cost moves as the key near‑term focal points for investors.
