EasyJet Shares Drop Despite Solid Outlook

easyJet (LON: EZJ) shares fell by over 5% at the start of Thursday’s session despite the airline reaffirming its positive outlook for the full year. 

The carrier reported a first-half headline loss before tax of £394 million, broadly in line with expectations.

The loss marks a slight improvement on the prior year once adjusted for Easter timing effects and one-off items. Revenue rose 8% year-on-year to £3.53 billion, with a 12% rise in available seat kilometres (ASK) as the airline continued to invest in longer leisure routes and new destinations.

Passenger numbers climbed to 18.2 million in the second quarter, up from 16.8 million last year, with load factors marginally higher at 87.5%. Cost discipline is also said to have improved, with total cost per seat down 1%, driven by fuel and efficiency gains.

Despite the seasonal loss, easyJet expects attractive earnings growth for the full year. 

The airline said current bookings suggest it is on track to meet FY25 consensus expectations. The company-compiled consensus for FY25 headline PBT is £703 million. In addition, the airline said it remains committed to its medium-term target of generating over £1 billion in annual pre-tax profit.

“Current bookings are supportive of performance meeting FY25 consensus,” the company said. Forward bookings for the third quarter are 80% sold, and 42% for the fourth quarter.

The holiday division delivered a £44 million profit, with customer numbers expected to grow 25% this year. 

“We remain focused on delivering another record summer this year, expecting to drive strong earnings growth as we continue to progress towards our target of sustainably generating over £1 billion of annual profit before tax,” said easyJet CEO Kenton Jarvis.

“We continue to see strong demand for easyJet's flights and holidays, as we attract more customers.”