easyJet earnings preview: can the budget airline maintain strong momentum into 2026?
easyJet reports earnings on 29 January 2026, with investors focused on passenger demand, cost control and the growing contribution from its holidays division.
easyJet earnings preview: can the budget airline maintain strong momentum into 2026?
easyJet is poised to report its next earnings on 29 January 2026, a key financial milestone that will reveal how the United Kingdom (UK)-based budget airline closed out 2025 and how effectively it has translated recent trading momentum into year-end financial performance.
The results will be especially scrutinised given the evolving competitive landscape in European aviation and the company's ongoing strategy to balance airline operations with its growing holidays division.
Strong Q3 performance sets positive baseline
Investors will be looking closely at how easyJet's performance through the second half of fiscal 2025 - particularly the crucial third quarter (Q3) - feeds into the full-year outcome.
In a trading update covering the three months to 30 June 2025, easyJet reported a headline profit before tax of £286 million, up about £50 million year-on-year (YoY) and broadly in line with expectations, underpinned by strong passenger demand for its core short-haul network.
Capacity, as measured by available seat kilometres (ASK), increased by around 7.9 percent, while revenue per seat kilometre (RASK) rose modestly, benefiting in part from the timing of Easter and solid load factors.
The company also reported that its easyJet Holidays segment delivered a profit before tax of £86 million, highlighting the contribution of its package-holiday business to the group's overall performance.
Forward bookings for the fourth quarter (Q4) were approximately 67 percent sold, slightly higher than the year-ago level, reflecting sustained customer demand through the later stages of 2025.
The Q3 performance demonstrated easyJet's ability to grow capacity whilst maintaining revenue per seat. This combination drives revenue growth without sacrificing unit economics, a key metric for airline profitability.
Key metrics to watch in January results
As easyJet prepares to disclose its full six- or nine-month trading and profitability data, attention will centre on whether that Q3 strength has carried into the latter part of the year.
Analysts will be closely watching several key indicators, including revenue trends, profitability margins, and the degree to which unit revenue growth has offset cost pressures.
According to LSEG Data & Analytics, analysts rate easyJet as a ‘buy’ with 6 ‘strong buy’, 6 ‘buy’, 6 ‘hold’ and 3 ‘sell’ recommendations and a mean long-term price target at 605.83 pence, around 24% above the current share price, as of 27th of January 2026.
easyJet LSEG Data & Analytics chart
easyJet also has a TipRanks low Smart Score of ‘1 Underperform’ and a ‘hold’ rating.
easyJet TipRanks Smart Score chart
In the earlier trading update, easyJet projected total headline cost per available seat kilometre (CASK) would decline by low single digits for the full year, with headline CASK ex-fuel broadly flat, underscoring management's emphasis on operational efficiency even as external costs such as fuel and labour remain volatile.
Critical financial metrics for assessment
Several specific metrics will provide crucial insight into easyJet's performance:
- RASK trends
- CASK and ex-fuel CASK
- Load factors and passenger numbers
- Headline profit before tax versus analyst expectations
- Earnings per share (EPS) growth
Holidays division drives strategic diversification
easyJet's holidays business remains another focal point heading into the January results and represents an important strategic evolution. This division has been a strategic growth area for the airline, aimed at broadening revenue streams beyond traditional ticket sales and countering seasonal volatility.
Investors will be keen to see the latest contribution from holidays and whether it continues to enhance overall profitability, especially as the company refines its integrated travel offerings. Recent commentary from market sources suggests that easyJet's package holiday operations have achieved strong profit gains, with the division contributing a growing share of group earnings and being positioned for further expansion.
Balance sheet strength and capital allocation
Liquidity and balance-sheet strength are also poised to feature in discussions alongside the headline figures.
easyJet ended its last reported quarter with a healthy cash position that gave the airline flexibility to manage costs, invest in fleet modernisation and navigate cyclical demand changes without compromising its financial health.
Guidance around capital allocation - including dividends, debt levels and investment priorities - will be particularly relevant as the sector continues to grapple with macroeconomic uncertainty and competitive pressures from both low-cost and legacy carriers.
Operating risks and challenges
Despite encouraging indicators, risks to the outlook remain that could impact results.
The airline industry is sensitive to fuel price swings, currency movements, regulatory complexity and external disruptions such as air-traffic-control strikes, which have previously weighed on operations and profitability.
easyJet's own trading statement noted some of these pressures even during periods of robust passenger demand, highlighting the ongoing balancing act between revenue growth and cost control.
Competitive landscape in European aviation
Understanding easyJet's results requires viewing them within the broader European low-cost airline sector context. The company competes with Ryanair, Wizz Air and legacy carriers' budget subsidiaries across numerous routes.
Competition intensity affects pricing power and load factors. Strong demand allows airlines to maintain fares, whilst oversupply forces discounting that pressures unit revenues and profitability.
easyJet's positioning emphasises convenient primary airports rather than secondary bases favoured by some ultra-low-cost competitors. This strategy targets business and leisure passengers willing to pay moderately higher fares for convenience.
The recovery of business travel following the pandemic has benefited airlines serving primary airports with weekday schedules. easyJet's network design positions it to capture this demand better than pure leisure-focused competitors.
Forward guidance and 2026 outlook
In the run-up to the 29 January results, market participants will be parsing not only the headline earnings and revenue numbers but also management's commentary on trading patterns, yield trends, cost dynamics and forward guidance.
A strong earnings print that confirms sustained momentum from recent quarters could reinforce investor confidence in easyJet’s strategy, while any signs of softness in demand or margin compression may temper expectations for 2026 in an already competitive European aviation market.
Questions investors will want answered
Key questions for management commentary include:
- How is forward booking strength for summer 2026 compared with prior years?
- What cost pressures are emerging and how will they be mitigated?
- What are growth targets for the holidays division?
- How will capital be allocated between fleet investment and shareholder returns?
- What operational efficiency initiatives are delivering results?
Share price performance and technical analysis
easyJet shares - down around 5% since the beginning of the year and over the past year - have experienced volatility reflecting both company-specific factors and broader airline sector sentiment.
easyJet - a constituent of the FTSE 100, making its performance relevant for index tracking - has underperformed the UK blue chip index since August 2025 and continues to do so in early 2026.
FTSE 100 and easyJet comparison chart
The easyJet share price has been range trading between roughly 525p - 445p since August of last year and needs to break out of this sideways trading range for a new medium-term trend to establish itself.
easyJet daily candlestick chart
A rise and daily chart close above the 525.2p early January high would likely open the way for the June 2025 peak at 590.6p to be targeted whereas a fall through the 444.7p September trough would have bearish implications and would probably put the April 2025 low at 401.1p on the cards.
easyJet weekly candlestick chart
How to invest in easyJet shares
Investors interested in European aviation exposure through easyJet have several options. Here's how to approach investing in this budget airline:
- Research easyJet's latest trading updates, competitive positioning and industry trends thoroughly. Understanding airline sector dynamics and economic sensitivity helps inform investment decisions. How to invest in stocks provides useful background.
- Download IG Invest or open a share dealing account to access UK-listed shares. easyJet trades on the London Stock Exchange under the ticker EZJ.
- Search for easyJet PLC shares on the trading platform. Review current pricing, analyst recommendations and recent trading updates before making investment decisions.
- Choose the number of shares or value of money you'd like to invest based on your portfolio allocation strategy. Consider whether to hold shares in a general account, individual savings account (ISA) or self-invested personal pension (SIPP) for tax efficiency.
- Place your trade and monitor your investment over time. easyJet provides quarterly trading updates and semi-annual results, offering regular insight into operational and financial performance.
Remember that airline stocks can be cyclical and volatile, influenced by fuel prices, economic conditions and operational disruptions. Diversification across multiple sectors reduces concentration risk in cyclical industries like aviation.
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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