EasyJet (LON: EZJ) shares experienced a turbulent start to Thursday trading after the budget airline reported a sharply wider first-half loss, before recovering as investors digested the broader picture.
The stock opened higher at 350.4p — building on Wednesday’s close of 347.1p — before sliding sharply to a session low of 337p as the market absorbed a headline pre-tax loss of £552 million for the six months to 31 March 2026, a deterioration of 40% from the £394 million loss recorded in the same period a year earlier.
Shares subsequently recovered back toward the 347p level as analysts pointed to the result being broadly in line with the airline’s April trading statement.
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The deepening loss was driven by a combination of factors. Total costs rose significantly, with airline headline cost per available seat kilometre jumping 5% year-on-year.
Fuel costs were a key culprit — particularly £25 million in additional unhedged fuel costs incurred in March following the sudden escalation of the Middle East conflict, which sent jet fuel spot prices surging. Separately, £32 million of increased legal provisions added further pressure.
On the operational front, results were more encouraging. Passenger numbers rose 6% year-on-year to 42 million, with the load factor improving two percentage points to 90%. easyJet holidays continued its strong trajectory, delivering a 50% jump in EBIT to £48 million on 22% customer growth.
CEO Kenton Jarvis acknowledged near-term uncertainty but stressed easyJet’s “investment-grade balance sheet” — with net cash of £434 million and £4.7 billion of liquidity — as a buffer against continued market headwinds.
Forward bookings for H2 are running 2 percentage points behind last year at 58% sold, while H2 booked RASK is tracking 4% lower year-on-year, in part reflecting the earlier timing of Easter.
The airline intends to operate its full summer schedule and is accelerating its fleet upgauging programme, with all A319 aircraft set to be retired by FY29, expected to deliver around £250 million in annual cost efficiencies across FY27 and FY28.
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