easyJet cuts Q1 losses by 52% on festive demand and cost savings

Investing.com — easyJet’s (LON:) first-quarter result improved considerably, driven by strong holiday season demand and reduced costs. 

The airline’s operating loss for the quarter ending December 31, 2024, was £61 million, a £65 million improvement compared to the same period in the previous year, representing a 52% year-over-year improvement.

Passenger numbers grew by 7% year-on-year to 21.2 million, while available seat kilometers increased by 11%, reflecting the airline’s efforts to expand capacity and optimize operations. 

The airline also recorded a steady load factor, hovering around 88%, indicating strong demand during the traditionally busy festive season.

The reduction in losses was partly attributed to lower fuel costs, with fuel cost per available seat kilometer down 13% year-on-year. 

Non-fuel CASK remained stable, signaling effective cost management in other areas of operation. 

EasyJet Holidays, a crucial part of the company’s diversification strategy, generated a profit of £43 million in the quarter, an increase of £12 million compared to the previous year.

EasyJet anticipates an 8% increase in ASK capacity for fiscal year 2025. The airline expects continued strong demand for its flights and holiday packages. 

“Looking to this summer, we have seen continuing demand for easyJet’s flights and holidays where we have one million more customers already booked, with firm favourites like Palma, Faro and Alicante as well as new destinations like Tunisia and Cairo proving popular,” said  Kenton Jarvis, chief executive at easyJet in a statement.

The company stated that its current performance supports its goal of achieving over £1 billion in annual pre-tax profit. This goal will be achieved through continued capacity growth and cost-saving measures.