easyJet plc

easyJet said H1 underlying results were in line with expectations and its April trading statement. Management cited a GBP 25 million additional fuel cost from March volatility and GBP 32 million of legal provisions, while noting overall CASK increased 5% and CASK ex fuel increased 8% in H1 2026. The airline reported 6% more passengers on 4% more seats, with load factor up 2 percentage points to 90%; easyJet Holidays passengers rose 22% and profitability rose 39%, generating GBP 61 million in PBT. For the second half, management expects CASK ex fuel to rise by a low single-digit amount, says no further summer schedule changes are planned, and reiterated a medium-term ambition to deliver GBP 1 billion in PBT and more. On fuel, the company said it is 72% hedged at $726 per metric ton, with more than half of next winter covered and almost 30% of the following summer covered.

Kenton Jarvis framed the first half as operationally solid but pressured by fuel volatility, cost inflation, and some market oversupply on beach routes. He stressed that easyJet is navigating the uncertainty from a position of strength thanks to liquidity, hedging, and a strong balance sheet, and said customers can book summer with confidence because no fuel surcharges or further summer cuts are planned. Strategically, he emphasized moderated future growth, route maturation, better utilization, and disciplined capital allocation, while reiterating the GBP 1 billion-plus PBT target.

Jan De Raeymaeker focused on margin improvement rather than a pure cost-cutting program. He highlighted a GBP 2.5 million hurdle per aircraft, quantified the A319-to-A320 upgauging benefit at GBP 110 million in 2027, GBP 140 million more in 2028, and a GBP 250 million cumulative improvement by 2028, and said all A319s should be out of the fleet by 2029. He also cited H1 CASK pressure from one-offs, prior resilience spending, higher load-factor-related costs, FX, and airport fee inflation, and said summer CASK ex fuel should normalize to low single-digit growth. On liquidity and funding, he pointed to GBP 4.7 billion of liquidity, GBP 434 million of net cash, GBP 3.3 billion of cash on the balance sheet, and access to financing options including cash, bonds, JOLCOs, and asset-backed finance.

Analysts pressed management on cost programs, the weaker far-out booking profile, fuel risk, and whether peak-summer capacity or fares might be cut. Management said booking weakness is concentrated 6-8 weeks out, driven more by consumer caution and a shortened booking window than by pricing, while conversion remains strong when customers do search. On revenue management, Sophie Dekkers said easyJet is actively preventing its system from overreacting to softer bookings by holding fares up rather than chasing load factor at any cost; on fleet financing, Jan said future deliveries can be funded through cash, debt markets, JOLCOs, and asset-backed finance. They also said they do not plan to re-enter Israel next winter for planning clarity.