easyJet's half-year results came in line with prior guidance, with no material surprises to move the stock following the release. The market reaction of 0.0% reflects investor neutrality towards the reported seasonal losses, capacity growth, and cost pressures.
- Underlying H1 results matched the April trading statement, with no deviation from prior outlook.
- Winter losses remain above initial targets, driven partly by volatile fuel costs adding GBP 25 million in March.
- Seat capacity grew 24% over the past three winters, boosting aircraft utilization by 20% to pre-COVID levels.
- Passenger numbers rose 6%, lifting load factor by 2 percentage points to 90%, while easyJet Holidays demand grew 22%, with a 39% profit increase.
- Cost inflation and airport fee hikes (notably 35% at Schiphol) weighed on margin improvement; management expects low single-digit CASK ex fuel growth in summer.
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