Narrowing Losses, Growing Demand
EasyJet has reported a significant improvement in its finances, narrowing its headline pre-tax losses by 52% to £61 million for the first quarter of the financial year 2025. This positive result stems from a combination of cost-cutting measures and a notable increase in demand for package holidays.
Passenger Growth and Profitability
The airline witnessed a 7% growth in passenger numbers compared to the same period in the previous year, with EasyJet holidays recording a profit of £43 million, an increase of £12 million from the same period the previous year. This uptick in demand was mainly driven by robust sales of package holidays and utilization of the company’s primary airport network, as well as favorable fuel prices.
Focus on Cutting Costs and Investing in Fleet
EasyJet’s Q1 improvement can also be attributed to its renewed focus on cost-cutting measures and investments in its fleet. The airline took delivery of six new A320neo family aircraft in Q1 and has ordered an additional two for the summer. This expansion will further enhance the company’s operational efficiency and enable it to meet the growing demand for air travel.
Bright Outlook for the Summer
EasyJet is already experiencing strong bookings for the Easter and summer 2025 seasons, with over one million customers already reserved for flights. The airline remains optimistic about hitting its medium-term target of over £1 billion in profit before tax. Additionally, EasyJet holidays is expected to see a 25% growth in customer numbers on an annual basis, driven by the increasing popularity of package holidays.
CEO Kenton Jarvis on EasyJet’s Performance
According to EasyJet’s CEO, Kenton Jarvis, the company’s performance in Q1 was impressive, with reduced losses and increased demand for flights and holidays. “Looking to this summer, we have seen continuing demand for EasyJet’s flights and holidays, with firm favourites like Palma, Faro, and Alicante, as well as new destinations like Tunisia and Cairo, proving popular. This demonstrates positive progress towards our medium-term target to deliver more than one billion pounds of profit before tax.”
SOURCE: Ref Image from Reuters
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