--- title: "easyJet H1 Earnings Call Highlights" type: "News" locale: "en" url: "https://longbridge.com/en/news/287180006.md" description: "easyJet reported a wider first-half loss of GBP 552 million for the period ended March 31, 2026, impacted by higher fuel prices and softer forward bookings due to Middle East volatility. CEO Kenton Jarvis noted improved on-time performance and customer satisfaction, but acknowledged winter losses exceeded expectations. The airline has hedged 72% of its fuel needs and adjusted its summer network in response to the conflict. Despite challenges, easyJet maintains a strong balance sheet with GBP 4.7 billion in liquidity." datetime: "2026-05-21T08:04:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287180006.md) - [en](https://longbridge.com/en/news/287180006.md) - [zh-HK](https://longbridge.com/zh-HK/news/287180006.md) --- # easyJet H1 Earnings Call Highlights easyJet LON: EZJ reported a wider first-half loss for the period ended March 31, 2026, while management said the airline is responding to Middle East-related volatility, higher fuel prices and softer forward bookings from a position of balance sheet strength. Chief Executive Kenton Jarvis said underlying first-half results were consistent with the company’s expectations and in line with its April trading statement, but acknowledged that “winter losses remain above where we planned when setting out our medium-term targets.” Jarvis said the company’s focus is on improving winter performance as recent capacity investments mature and growth normalizes. Operationally, Jarvis said on-time performance improved to 78%, while customer satisfaction remained strong across both the airline and easyJet Holidays. Airline customer satisfaction rose 2 percentage points to 84%, and easyJet Holidays increased 1 percentage point to 85%. ## First-half loss widens as fuel, legal provisions and winter investments weigh The company reported a first-half loss before tax of GBP 552 million, a deterioration of GBP 158 million from the prior year. Headline losses before interest and taxes were GBP 533 million, down GBP 164 million year over year. In the financial review, the speaker said the result was in line with expectations excluding a GBP 25 million impact from unexpectedly high fuel prices in March following the start of the Middle East conflict and a GBP 32 million net increase in legal provisions tied to historic cases. Airline losses before interest and taxes rose GBP 180 million year over year to GBP 581 million. The company cited the first winter of operations at its new Milan Linate and Rome Fiumicino bases, which negatively affected results by GBP 30 million, along with continued winter capacity investments, competitive overcapacity in some beach markets and cost inflation weighted toward the first half. Those pressures were partially offset by stronger demand, with passenger load factors up 2 percentage points to 90%. Airline revenue rose 10%, supported by 6% passenger growth and higher yields, primarily from longer sector lengths. ## Middle East conflict creates booking and fuel uncertainty Jarvis said the Middle East conflict has introduced “near-term volatility” for easyJet, particularly around fuel prices and short-term demand. He said forward bookings softened after the conflict began, although March saw a strong late-booking environment for in-month departures, a trend that continued through April and May. For the summer, forward load factors for the third and fourth quarters were below prior-year levels after previously being ahead year over year before the conflict. Jarvis said strong late booking trends improved third-quarter load factors by 1 percentage point since the April trading statement. The company said it has 72% of its fuel requirements hedged at USD 726 per metric ton, though the unhedged portion remains exposed to spot prices. For the second half of 2026, management said every USD 100 per metric ton movement in fuel prices equates to GBP 35 million. After the start of the conflict, easyJet temporarily suspended regular short-term hedging while continuing to layer in hedges for outer months where the forward curve remained in backwardation. The airline also reviewed its summer network, redeploying about 400,000 seats away from countries adjacent to the conflict and into domestic and city routes across its broader network. It also trimmed some shoulder-season capacity in April and May due to elevated fuel prices, resulting in a net seat reduction of 0.3%. Jarvis said no further network changes are anticipated and that the company intends to operate the full summer schedule on sale. He said easyJet sees no fuel supply impact and continues to operate its schedule as planned. ## Balance sheet remains a key focus Management emphasized easyJet’s investment-grade balance sheet as a source of resilience. The company reported total liquidity of GBP 4.7 billion and a net cash position of GBP 434 million as of March 31, 2026. The financial review also noted that there are no bond maturities due until full-year 2028. The net book value of owned assets increased to GBP 5 billion, reflecting additional aircraft ownership and new engines. The company said 86% of its A320neo fleet is now owned, above its 75% target, and it remains on track for the net book value of owned assets to exceed GBP 7.5 billion by full-year 2028. ## easyJet Holidays continues to grow easyJet Holidays delivered stronger profit growth in the first half, with profit before tax rising 39% to GBP 61 million. Earnings before interest and taxes increased 50% to GBP 48 million. The company said performance was driven by 22% customer growth and a 1 percentage point margin improvement to 9%. The holidays business reported 1.3 million customers, while its attachment rate across beach and city flights increased to 6.3%. The European customer base grew 66% year over year, albeit from a relatively small base. Management said easyJet Holidays remains on track to deliver low double-digit customer growth for full-year 2026, although second-half growth is expected to be affected relative to original expectations due to the current demand environment. Jarvis said the company plans to launch a new flight-plus-hotel proposition later this year for the upcoming winter season, allowing customers to book city breaks within the airline booking flow. In Germany, easyJet Holidays plans to launch through 500 high street travel agents in the Berlin catchment area in the first half of 2027. ## Fleet modernization and cost initiatives underpin medium-term targets Jarvis said easyJet remains focused on delivering medium-term margin improvement and a target of more than GBP 1 billion of group profit before tax. He said the company is allocating capital where returns are highest, using a hurdle rate of GBP 2.5 million of profit before tax per aircraft. The company said fleet upgauging will drive around GBP 250 million of cost efficiencies across full-year 2027 and full-year 2028. Management said all A319 aircraft will now exit the fleet by the end of 2029, with retirements accelerated versus the prior plan. Replacing A319s with A320 and A320neo family aircraft is expected to reduce unit costs, including fuel burn per seat. Across 2027 and 2028, the company expects to realize just under GBP 3 of unit cost efficiencies, including fixed cost scaling benefits. The average number of seats per aircraft is expected to rise from 182 to 192 over that period. Jarvis also highlighted investments in digital tools, automation and artificial intelligence, including customer service automation, disruption self-service tools, operational technology at Gatwick and schedule optimization. He said these initiatives are intended to simplify processes, improve reliability and support cost savings over time. Despite the uncertain outlook, Jarvis said easyJet’s medium-term financial ambition remains unchanged. “We remain focused on actions that will drive tangible performance improvement as we return to a more normalized operating environment,” he said. ## 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. _This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com._ ## Should You Invest $1,000 in easyJet Right Now? Before you consider easyJet, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and easyJet wasn't on the list. 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