easyJet expects a loss of up to £560 million in the first half of 2026. Fuel costs and the Middle East crisis affected financials. Details in our news.
Rising Costs and Geopolitical Risks Effective
easyJet expects to report a pre-tax loss in the range of £540–560 million for its first-half financials ending in March 2026. This marks a significant increase compared to the £394 million loss in the same period last year, indicating a challenging period for the company’s financial performance.
While the company states that this period is traditionally a loss-making half, this year’s increased loss has nearly doubled due to geopolitical developments in the Middle East and the resulting cost pressures.
Fuel and Legal Expenses Increased Losses
easyJet stated that fuel costs created an additional burden of £25 million in March, while a £30 million increase in legal provisions related to past cases also negatively impacted the balance sheet.
These two items were among the main factors deepening the company’s losses despite a strong demand environment operationally.
Strong Demand: Load Factor Reached 90%
Despite financial losses, operational indicators showed notable improvement. In the first half, easyJet announced:
- Passenger load factor increased to 90% (up 2 points),
- easyJet Holidays customer numbers increased by over 20%.
This highlights that the package holiday segment has become a growth engine for the company.
New Bases and Capacity Investments Increased Costs
easyJet’s first-half performance also includes investment costs for new bases opened at Milan Linate Airport and Rome Fiumicino Airport.
While easyJet management stated that these bases performed in line with expectations during their first winter season, during the same period:
- Increased aircraft utilization,
- Creation of excess capacity in some markets are considered strategic steps that have raised costs in the short term.
Revenue Growth, Demand Imbalance
easyJet’s unit revenue metric, RASK, increased by approximately 3% year-on-year in the second quarter. This increase was driven by:
- The early Easter period,
- Strong demand on European domestic and city routes,
- Last-minute bookings to Western Mediterranean destinations.
However, weakening demand in markets such as Turkey, Egypt, and Cyprus due to geopolitical effects created an imbalance in the company’s regional revenue distribution.
Uncertainty Continues: Booking Curve Shortened
easyJet stated that unit costs excluding fuel are in line with full-year expectations, while total costs (CASK) may vary depending on fuel prices.
The company also announced that it has hedged approximately 70% of its price risk for the summer season.
However, management draws attention to the following risks:
- Conflicts in the Middle East
- Volatility in fuel prices
- Bookings shifting to shorter lead times
