EasyJet Reports Wider Loss, Yet Positive Outlook for Growth

EasyJet Plc reports a widened loss in H1 but shows revenue growth with an optimistic outlook for fiscal 2025, expecting earnings improvement amid strong demand.

Date: 22-05-2025

AI Rating: 7

**Earnings Overview**: EasyJet’s first half performance shows a wider loss before tax of 401 million pounds compared to 347 million pounds last year, resulting in an increased basic loss per share of 39.5 pence versus 34.3 pence previously. Although the loss deepened, this performance can be contrasted against the company’s total revenue, which was reported at 3.53 billion pounds, representing an 8% increase from last year’s 3.27 billion pounds.

**Revenue Growth Analysis**: The revenue growth is a positive indicator, suggesting that despite challenges, EasyJet is effectively increasing its market share or ticket pricing power. This growth can be attributed in part to a 6% increase in seat capacity and an 8% rise in passenger numbers, reflecting strong consumer demand for travel. The EBITDA was negative at 5 million pounds, which decreases profitability metrics.

**Earnings Per Share and Future Expectations**: Although the basic loss per share increased, the company's medium-term outlook for fiscal 2025 includes projections for positive earnings growth, supported by increased capacity and a robust demand forecast. EasyJet expects an ASK growth of approximately 8% year-over-year, contributing to the recovery and potential profitability improvement. The focus on reaching over £1 billion profit before tax will be critical in instilling investor confidence.

**Conclusion**: Overall, while EasyJet has experienced substantial losses this period, the revenue growth and strategic outlook for fiscal 2025 present an opportunity for recovery. The flight capacity increases, strong demand for flights, and management's confidence in reaching profitability targets suggest that investors should monitor the stock closely, particularly as operational metrics improve.

Stocks: EZJ.L