easyJet (LON:EZJ) said its first-half performance for the period ended March 31, 2026, was in line with expectations and consistent with its April trading statement, while management emphasized that the airline is managing near-term geopolitical and fuel volatility from what it described as a strong balance-sheet position.
Presenting the results, Kenton said the airline saw “a very limited impact from the Middle East in terms of trading,” but noted that volatile fuel pricing in March added GBP 25 million of cost. He also acknowledged that winter losses remain above where the company had planned when it set its 2023 targets, saying reducing seasonal losses remains a structural focus.
The airline added 24% in seat capacity and 33% in available seat kilometers over the last three winters, which management said helped restore aircraft utilization to pre-COVID levels. Kenton said utilization is now 20% higher than in 2023, giving the airline room to moderate growth in future winters and allow route investments to mature.
Passenger Growth and Holidays Performance
easyJet reported a 6% increase in airline passengers in the first half, supported by a 4% rise in seats. Load factor improved by 2 percentage points to 90%. easyJet Holidays continued to grow faster, with passenger numbers up 22% and first-half profit before tax rising 39% to GBP 61 million.
Kenton said the airline’s performance was affected by market oversupply on some major beach routes, particularly in the London-Spain market. He attributed part of that oversupply to airlines pulling capacity from Tel Aviv and redeploying aircraft into longer leisure beach routes. The company also incurred costs from its first winter of operations following investments in Rome Fiumicino and Milan Linate, where Kenton said easyJet is flying “remedy routes” that are expected to mature over time.
Cost pressures were also weighted toward the first half. Management cited resilience measures carried over from summer 2025, above-inflation airport fee increases including a 35% rise at Schiphol, digital investment and passenger-related costs linked to higher load factors. For the summer period, Kenton said easyJet expects CASK excluding fuel to increase by a low single-digit amount.
Bookings Shorten Amid Fuel Concerns
Management said demand remains strong close to departure, but the booking window has shortened as consumers wait longer before committing. Kenton said April demand was strong and that strength continued through May, but bookings further out remain behind prior-year levels.
At the time of the April trading statement, the airline’s third-quarter load factor was 2 percentage points behind last year; Kenton said that gap had narrowed to 1 point. Fourth-quarter bookings remained behind last year, although the company said it was holding prices above prior-year levels and seeing good conversion when customers search and enter the booking flow.
Sophie said searches for August were down 15%, while bookings converted 13% higher year over year once customers did search. She said the revenue management system is being adjusted so it does not automatically lower fares in response to softer forward bookings. “There’s no reason to believe that we need to drop the fares anymore,” she said, adding that the focus is on giving customers confidence to book.
Gary said easyJet Holidays had previously expected around 15% growth for the year, but given the crisis now expects growth below that level, likely in the low double digits. He said late demand, particularly within four weeks of departure, has been strong, helped by hoteliers in markets such as Turkey, Egypt, Tunisia, Morocco and Cyprus reducing prices quickly.
Fuel Hedging and Schedule Plans
easyJet said it is 72% hedged for jet fuel at $726 per metric ton, with more than half of next winter covered and nearly 30% of the following summer hedged, both in the $700s per metric ton. Kenton said the hedge protects both the company and its customers from volatility, noting that every GBP 100 change in fuel on the unhedged portion equates to GBP 35 million.
The company reported GBP 4.7 billion of liquidity, more than GBP 1 billion above its liquidity policy, and a net cash position of GBP 434 million. Kenton said easyJet has “one of the best investment-grade balance sheets in European aviation.”
In March, the airline reallocated about 400,000 seats away from countries adjacent to the Gulf region, including Turkey, Cyprus and Egypt, and toward the Western Mediterranean, city flows and domestic routes. It also trimmed some April and May capacity on thicker routes due to elevated fuel prices. Overall, the changes reduced summer capacity by 0.3%.
Kenton said easyJet plans no further summer schedule changes and does not intend to introduce fuel surcharges. He also said the airline has seen no fuel supply issues at any of the 165 airports it serves across the U.K., Europe and North Africa, citing efforts by fuel suppliers and governments to diversify supply.
Cost Focus, Fleet Upgauging and Capital Allocation
Jan said the company’s focus is not solely on costs but on margins, with capital allocation becoming more selective. easyJet is introducing a hurdle rate of GBP 2.5 million per aircraft for placing growth aircraft into bases. Jan said the airline will grow or redeploy capacity only where that profitability threshold can be met.
A major efficiency driver will be replacing A319 aircraft with larger, more efficient aircraft. Jan said easyJet still has 79 A319s in its fleet and that an A319 burns 10% more fuel than an A320 while carrying a unit cost position 24% more expensive. The company expects GBP 110 million of cost improvement in 2027 and an additional GBP 140 million in 2028, for a total GBP 250 million improvement by 2028. Kenton clarified that this benefit is part of easyJet’s existing medium-term targets, not incremental to them.
Management said the airline now expects to retire all A319s by 2029. It still expects 17 aircraft deliveries this year, 30 next year and 43 the year after, with Airbus deliveries described as slipping by one or two months rather than structurally delayed.
Jan said easyJet has multiple financing options for future aircraft deliveries, including existing cash, debt capital markets, Japanese operating leases with call options and asset-backed financing. He said the company currently has GBP 3.3 billion of cash on its balance sheet and access to a $1.7 billion revolving credit facility.
Medium-Term Ambitions Unchanged
Management reiterated easyJet’s ambition to deliver more than GBP 1 billion in profit before tax over the medium term. The company said easyJet Holidays remains on track toward a GBP 450 million target, with continued growth in the U.K. and plans to expand in Europe. Gary said the company is signing up 500 travel agents in the Berlin catchment area, reflecting the importance of offline distribution in Germany.
easyJet also plans to introduce a flight-plus-hotel proposition within the airline booking flow, expand hotel inventory from 8,000 to 13,000 properties and launch a new loyalty program at the start of next year. Kenton said details of the loyalty program would be provided later, but said it is expected to drive engagement, repeat bookings and margin accretion.
Despite near-term uncertainty, Kenton said the company remains focused on disciplined capital allocation, network optimization, digital investment and margin improvement as it works toward its medium-term profit target.
About easyJet (LON:EZJ)
We are a low-cost, European, point-to-point airline. We use our cost advantage, operational efficiency and leading positions in primary airports to deliver low fares for our customers – making great value travel accessible for everyone. We aim to provide simple, convenient travel and holidays at a competitive price with outstanding customer service. easyJet is one of the largest airlines in the world, with 347 aircraft, operating 1,099 routes across 35 countries and 160 airports.
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