EasyJet (LON: EZJ) shares tumbled in early Thursday trading following the airline’s Q3 trading update, which revealed strong operational performance but warned of headwinds for full-year profit due to French air traffic control (ATC) strikes.
EZJ is down over 6%, trading around the 490p mark. It initially dropped as low as 483.3p a share. It is now trading at levels last seen in April.
The low-cost carrier reported a headline profit before tax of £286 million for the three months to June 30, 2025, a £50 million year-on-year increase, driven by robust demand and improved operational resilience.
Revenue grew 10.9% year-on-year to £2.9 billion, and easyJet holidays delivered £86 million profit before tax in the quarter, rising £13 million from last year.
However, easyJet flagged that recent industrial action by French ATC in early July has cost the airline approximately £15 million, with an additional £10 million hit from rising fuel prices.
“The outlook for FY25 remains positive, with good profit growth expected year on year, albeit impacted by recent higher fuel costs and the scale of industrial action by French air traffic control,” EasyJet told investors.
Despite these challenges, easyJet maintained a positive outlook, highlighting 67% of Q4 capacity already sold and forecasting over £235 million full-year profit from its holidays business.
Capacity growth for FY25 is expected to reach around 9% year-on-year. However, the airline noted that the trend towards later bookings continues to be seen. As a result, the company said that “the final outcome for FY25 will, as always, depend on late summer bookings and the associated yield.”
CEO Kenton Jarvis stated: “We are extremely unhappy with the strike action by the French ATC in early July, which, as well as presenting unacceptable challenges for customers and crew also created unexpected and significant costs for all airlines.”
Nonetheless, he reiterated his confidence in the company delivering long-term growth.
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