EasyJet PLC Financial Performance Analysis for H1 2025

May 23, 2025 1:00 PM - Gordon Thompson

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EasyJet PLC Financial Performance Analysis

EasyJet PLC (PNK:EJTTF), a leading UK-based low-cost airline listed on the FTSE 100, reported its half-year financial results for the six months ending March 31, 2025, on May 22, 2025. The company faced a challenging period, with an earnings per share (EPS) of -£0.50, slightly missing analyst estimates of -£0.49. Despite headwinds, EasyJet remains confident in meeting full-year market expectations, supported by robust bookings and a growing holidays division.

For the half-year period, EasyJet reported a headline loss before tax of £394 million, up 9% from £361 million in the prior year, driven by a 9% increase in headline costs, including higher fuel expenses. Revenue rose 8% year-over-year to £3.5 billion (~$4.55 billion USD, based on a 1.30 USD/GBP exchange rate), but fell short of analyst expectations of ~£3.6 billion.

Growth was fueled by a 5% increase in passenger revenue, a 7% rise in ancillary revenue, and a 29% surge in sales from the holidays division, which posted a profit of £44 million, up from £31 million the previous year. Operational metrics showed mixed results. Available seat capacity increased by 12% year-over-year, driven by a 6% rise in both seat numbers and flight length. However, revenue per available seat kilometre (RASK) declined by 6%, impacted by the earlier timing of Easter and investments in longer routes. Despite these challenges, EasyJet's focus on cost control and its holidays business bolstered its outlook.

From a financial perspective, EasyJet's market metrics as of May 22, 2025, include a price-to-earnings (P/E) ratio of ~8.75, a price-to-sales ratio of ~0.43, and an enterprise value to sales ratio of ~0.63, reflecting a relatively low valuation. The enterprise value to operating cash flow ratio is ~4.03, indicating efficient cash flow generation. The debt-to-equity ratio stands at ~1.10, and the current ratio is ~1.02, suggesting a balanced ability to cover short-term liabilities.

EasyJet's optimism for the full year is underpinned by strong current bookings and operational improvements. The company continues to compete effectively in the low-cost airline sector, alongside peers like Ryanair and Wizz Air, with strategic investments in capacity and its holidays division positioning it for recovery.

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