The low-cost carrier reported a third-quarter headline pretax profit of £286 million, up 21% year-on-year, matching market expectations. Revenue rose 11% to £2.92 billion, slightly ahead of estimates. Passenger revenue increased nearly 10% to £1.76 billion, with ancillary revenue reaching £732 million. Load factor remained steady at just over 90%, while total passenger numbers rose to 25.88 million.
Analyst reactions were swift. Panmure Liberum trimmed its price target from 800p to 730p, cutting forecasts by 7% due to flagged headwinds. However, analyst Gerald Khoo underlined the sustained strength of EasyJet Holidays, which he identified as the key driver of improved medium-term returns on capital. He also noted that the June quarter benefited from the late timing of Easter.
Jefferies’ Jaina Mistry highlighted a consensus cut of about 5.5%, reflecting the drag from strikes and fuel costs. She interpreted this as implying tighter cost control in the final quarter, and found the profit before tax target for Holidays “reassuring.” Mistry also sees potential for a re-rating based on the group’s expanding package holiday business, ongoing fleet renewal, and longer-term dividend upside.
Bernstein’s Alex Irving maintained a more cautious stance, rating the stock as market-perform. He said results were in line and the airline remains broadly on course to meet consensus profit targets. He did, however, flag a small uptick in full-year capacity guidance—from 8% to 9% growth—while cost expectations were left unchanged.
The company stated it expects full-year capacity of about 103 million seats, with around 58 million of those flown in the second half. ASK (available seat kilometre) growth is forecast at approximately 9% for the year, although with a more muted pace in the latter half. It has currently sold 67% of fourth-quarter capacity.
Chief Executive Kenton Jarvis voiced frustration over the early July French strike, calling it disruptive and costly. Nonetheless, he emphasised that demand for budget-friendly flights and holiday packages remains strong, even as customers are taking longer to book—something he partly attributes to fluctuating summer weather.
Jarvis also acknowledged a temporary impact on bookings to Egypt and Turkey due to Middle East tensions, but said demand has since rebounded, and route plans remain unchanged.
EasyJet Holidays is on track to exceed £235 million in profit before tax this year. The group reiterated its expectation of good profit growth in 2025, although it acknowledged that macroeconomic uncertainty, fuel prices, and industrial actions remain headwinds. New medium-term profit targets will be revealed at the end of the year.
Despite the current challenges, 16 analysts maintain a ‘buy’ rating on the stock, with five holds and no sells—a sign that EasyJet’s long-haul outlook still carries tailwinds.
