Budget airline EasyJet reported a solid outlook for the summer travel season on Wednesday, with bookings for flights and holiday packages tracking ahead of last year. The airline expressed confidence it would meet analysts’ expectations for full-year profits.
The carrier posted a pre-tax loss of £394 million for the six months ending March 31, which encompasses its traditionally quieter winter period. The result was in line with market expectations and marked an improvement from the previous year, after adjusting for the timing of Easter.
Looking ahead, EasyJet said it is seeing “positive momentum” in demand for both its core flight operations and its expanding holidays division. The airline reiterated its target of £703 million in pre-tax profit for the current financial year and remains on course to reach its medium-term goal of £1 billion.
The upbeat forecast echoes that of rival Ryanair, which earlier this week reported summer bookings running 1% ahead of 2024 levels. However, sentiment across the travel industry remains mixed. TUI, Europe’s largest travel operator, recently reported a 1% dip in summer bookings and warned of a potentially challenging 2025, citing market uncertainty in Germany, its largest market.
While Easy Jet operates across Europe, the UK remains its largest and most important market.
In a note of caution, EasyJet said it is currently evaluating the potential effects of newly announced U.S. tariffs on its operational costs and supply chain, though it stressed that the impact “remains uncertain at this early stage.”
The airline also confirmed it continues to suspend flights to Tel Aviv due to ongoing conflict in the Israel-Gaza region.
Despite the steady performance and positive summer outlook, EasyJet shares fell 3% in early London trading following the earnings release.
