EasyJet reports early winter losses but is optimistic as more seats are filled

EasyJet’s early winter loss increased by 52 per cent – but the airline is optimistic at the end of its best-ever January booking spell.

Britain's biggest budget carrier lost £93m between October and December last year, an average of £3.69 per passenger flown. During the same period in 2024, the loss was £61m, representing £2.53 for each passenger.

The Luton-based carrier flew 25.2 million passengers during the three months – up seven per cent year-on-year.

In its trading update, easyJet said three factors were responsible for the increased losses, starting with the costs of expansion in Italy’s two biggest cities:

It is traditional for budget carriers and holiday companies to lose money in the winter. The airline’s “load factor” – the proportion of seats filled on the average flight – rose 2 per cent to 90 per cent. The improvement is equivalent to three or four extra seats being filled on each flight during the three-month spell.

EasyJet’s holiday operation carried 20 per cent more people between October and December 2025, with the rise in the full financial year to September 2026 expected to be 15 per cent.

Chief executive Kenton Jarvis said: “We have seen continued demand for our flights and holidays over the last quarter, growing airline passenger numbers and load factor.

“Our focus on, and investment in, customer experience and punctuality is driving strong results with a four percentage point rise in customer satisfaction and on-time performance year on year.

“Bookings are building well for the summer season, with our largest-ever January booking period. We remain committed to delivering sustainable value and continue to progress towards our medium-term target of generating over £1 billion in profit before tax.”

During 2026, costs are expected to rise due to “increasing environmental costs, wages and airport charges” but will be partially offset by “operational efficiencies alongside favourable fuel prices”.

Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, said of the results: “EasyJet’s top line continues to roar ahead, helped by strong demand in its package holiday arm as the group landed its largest-ever January booking period.

“While the top line is flying in the right direction, headlines will likely be grabbed by growing winter losses. However, that was already expected as easyJet looks to set up new strategic bases in Milan and Rome. It also misses the bigger picture: easyJet’s underlying performance continues its ascent.”

EasyJet’s “ancillary revenue” grew in line with its overall revenue at nine per cent, year on year. On Wednesday the Advertising Standards Authority upheld a complaint against the carrier for the way its charges for larger pieces of cabin baggage were portrayed.

Coinciding with the financial results, the airline has published a “Great British Holiday Audit”, looking at travel trends among UK customers.

Mr Jarvis said: “Longer short-haul routes are growing in popularity and opening up new cultures.”

The length of the average easyJet flight rose by four per cent to almost 1,300 miles, reflecting longer routes such as links to Cape Verde off the coast of West Africa.

More passengers are using AI to plan their trips, the report says. The easyJet CEO said: “It is great to see people exploring new destinations, using new technology in innovative ways and seeking out alternative experiences.

“One thing that hasn’t changed is the importance of holidays. It is clear they are being safeguarded as a non-negotiable part of life. Holidays matter more than ever.”

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