UK-based easyJet PLC (GB:EZJ) has trimmed its losses by 50% in Q1, thanks to strong holiday travel during the Christmas period and lower fuel prices. The airline reported a pre-tax loss of £61 million for the quarter ending in December, marking a significant improvement from £126 million recorded a year ago.
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Despite the positive results, investors reacted negatively to the update, with shares dropping by over 3%. This decline was primarily due to the company’s warning of weaker revenue expectations for the second quarter.
easyJet operates in 34 countries and is known for its cost-effective services.
easyJet Sees Year-End Passenger Growth
In the first quarter of FY25, passenger numbers rose by 7% to 21.2 million, up from 19.8 million in the same period last year. This led to 11% growth in passenger revenues. Meanwhile, easyJet Holidays reported a profit of £43 million, marking a £12 million year-over-year increase. easyJet Holidays expects a 25% growth in customer numbers for FY25.
The growth was mainly driven by strong demand for package holidays along with its cost-cutting measures. Moreover, fuel costs decreased by 3% in the quarter, totaling £500 million.
During the quarter, easyJet took delivery of six new Airbus A320neo aircraft, followed by one delivery in January. The airline is expecting two more aircraft to be operational by the peak of the summer holiday season. Moving ahead, it is seeing strong bookings for Easter and summer 2025 and is optimistic about reaching its medium-term profit target of over £1 billion before tax.
Are easyJet Shares a Good Buy?
As per the consensus among analysts on TipRanks, EZJ stock has been assigned a Moderate Buy rating based on eight Buy and five Hold recommendations.
