Package holidays flying off the cabinets at Easyjet – however airline’s losses bounce on Italian enlargement

Easyjet reported higher losses in the first quarter as it expanded into Italy – but this was partly offset by a surge in customers booking its own-brand package holidays. 

The no-frills airline said headline losses jumped to £93million, £32million higher than the previous year, as it invested in new routes to Milan Linate and Rome Fiumicino.

Easyjet previously projected weaker sales over winter, and the first quarter of the year is traditionally loss-making for airlines as demand dips.

Passenger numbers rose 7 per cent with the load factor – how full its planes are – improving to 90 per cent.

Easyjet’s package holiday arm, meanwhile, has gone from strength to strength. 

Easyjet Holidays customers jumped 20 per cent in the three months to 31 December, as cost-conscious travellers look for value.

Package holidays fly: Cost conscious travellers are opting for package holidays 

It made £50million in pre-tax profit from £311million of revenue, and accounts for around 14 per cent of total group revenue.

The airline reiterated its full-year outlook after a record January for bookings, in volume and growth. The second half of the year is 22 per cent sold for the airline and 47 per cent for holidays.

Chief executive Kenton Jarvis said: ‘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.’

Revenue per seat was flat, while costs rose 2 per cent. Easyjet expects to see ‘modest inflation‘ as it eyes efficiencies and ‘favourable’ fuel prices, which will be offset by market-wide environmental costs, wages and airport charges.

Forward bookings were ahead of last year, with 63 per cent sold in the second quarter and 22 per cent in the second half.

Elsewhere, Wizz Air reported operating losses had widened to 123.9million in the third quarter, up from 75.9million in the previous year. Customer numbers jumped 12.5 per cent.

Shares in Easyjet rose 2.52 per cent to 487p but are down over 5 per cent year-to-date.

Mark Crouch, market analyst, said: ‘A Q1 FY26 headline loss before tax of £93m will do little to reassure investors this morning. Underperforming peers, Easyjet has left shareholders scratching their heads, questioning what the airline is doing differently, or failing to do.

‘In Europe’s crowded short-haul skies, competition is fierce. What’s holding Easyjet back is less a lack of destinations and more a struggle to execute. 

‘Looking ahead to the summer season, all the ingredients are there. The aircraft are full, fuel costs are favourable, and the skies are busy. What’s holding Easyjet back might only be Easyjet.’