EasyJet’s shares dropped to their lowest point since October as the airline reported weaker revenue expectations for Q2, despite narrowing its Q1 losses and maintaining its annual profit forecast, REUTERS news agency reported.
The airline reduced its Q1 operating loss to £40 million for the three months ending December 31, 2024, compared to £117 million during the same period the previous year. The improvement was attributed to easing fuel costs and robust demand for travel and holiday packages.
New CEO Kenton Jarvis highlighted strong summer demand, with over one million more customers already booked for popular destinations such as Palma, Faro and Alicante. However, EasyJet’s Q2 revenue forecast was tempered by increased capacity on longer leisure routes and the Easter holiday falling in Q3 rather than Q2 this year.
The airline’s summer outlook remains promising, with analysts suggesting that the later timing of Easter, at the end of April, could benefit results in H2. As the first UK airline to report its performance this year, EasyJet’s results underline the seasonal challenges faced by airlines in Q1, typically the weakest period for the industry due to reduced travel between January and March.
EasyJet’s ability to navigate Q2 revenue pressures while leveraging strong summer bookings will be critical to achieving its annual targets and maintaining investor confidence. (£1.00 = US$1.23 at time of publication).
