EasyJet posts stronger profit than expected

EasyJet reported a stronger-than-anticipated full-year operating profit and raised the medium-term profit target for its holidays division after meeting prior goals ahead of schedule. The low-cost carrier posted an operating profit of £703 million for the financial year ended September, exceeding analyst expectations of about £669 million. Executives attributed the result to robust leisure demand and strong summer trading, which also produced record bookings for packaged holidays.

EasyJet Holidays, the group’s higher-margin package business, outperformed and reached its earlier profit milestone sooner than planned. Management raised the division’s medium-term pretax profit target to £450 million by 2030, substantially higher than previous guidance. The company said holiday capacity for the following year was largely sold already and expects holiday customer numbers to grow roughly 15% as travellers favour predictable, all‑inclusive options. Analysts noted that the expanding holidays arm is shifting easyJet’s revenue mix toward more stable, higher-margin operations, helping to smooth volatility in ticketed flight revenues.

Despite the upbeat annual result, the carrier warned of headwinds ahead. Winter trading faces risks from economic uncertainty, elevated fuel costs and the potential for air‑traffic control disruptions and labour issues that have recently hit European carriers. The industry backdrop remains mixed: airlines across the region have reported varied outcomes in recent quarters as they battle rising costs and operational pressures even while leisure demand stays resilient.

EasyJet emphasized continued focus on cost discipline and operational resilience while leaning into growth in packaged travel as a strategic priority. Management said the holidays business will remain central to group strategy, supported by investments in product and distribution to capture higher-margin leisure customers. Market reaction highlighted investor interest in the improved earnings mix, with commentators viewing the upgraded holidays target as evidence that packaged travel can materially enhance profitability.

The results underscore a broader sector trend where strong leisure markets are offsetting some of the strains from higher operating costs and infrastructure disruptions. For easyJet, the combination of a solid profit beat, rapid expansion of its holidays arm, and a revised £450 million pretax profit ambition for 2030 signals a deliberate pivot to monetize growing demand for bundled holiday experiences while maintaining vigilance over near-term operational and macroeconomic risks.