EasyJet (EJTTF) Q2 2026 Earnings Report

The call presents a cautiously optimistic tone: management reported clear operational improvements (higher utilization, load factor at 90%, strong easyJet Holidays performance, improved on-time and customer satisfaction) and a robust balance sheet with substantial hedges and liquidity that underpin medium-term ambitions (GBP 1bn+ PBT). At the same time, near-term headwinds are material — fuel-price volatility (GBP 25m hit in March), higher CASK ex-fuel (+8% in H1), legal provisions (GBP 32m), airport fee inflation and weaker forward bookings (searches and August bookings significantly behind), particularly for Q4. Management has clear mitigation plans (active hedging, capital discipline, upgauging with quantified savings, network optimization, digital investments), and the positives (financial strength, quantified upgauging benefits, Holidays growth) modestly outweigh the risks, though execution on mitigating actions and demand recovery will determine outcomes.

The management reiterated that H1 was broadly in line with the April trading statement despite a GBP25m March fuel hit, and guided customers to “book with confidence” with no further summer schedule cuts (summer capacity was trimmed 0.3% after reallocating ~400k seats) and no planned fuel surcharges; they kept the medium‑term target of >GBP1bn PBT and a strict GBP2.5m per‑aircraft hurdle for new base growth. Key financial and balance‑sheet metrics supporting the guidance include GBP4.7bn liquidity ( >GBP1bn above policy), net cash GBP434m, 72% jet fuel hedged at roughly $726/mt (over half of next winter and ~30% of the following summer hedged) and the sensitivity that every $100/mt on the unhedged portion equals ~GBP35m. Fleet and cost guidance: deliveries of 17 (this year), 30 (next) and 43 (year after), accelerated A319 retirements (all out by 2029) and quantified upgauging savings of GBP110m in 2027 + GBP140m in 2028 (GBP250m by 2028) with an expected EUR0.25bn of P&L efficiencies in full‑year ’27/’28; CASK ex‑fuel is expected to evolve by a low single‑digit amount. Operational guidance and KPIs included passengers +6%, seats +4%, a 2pp lift to 90% load factor, aircraft utilization +20% vs 2023, easyJet Holidays passengers +22% and H1 Holidays PBT GBP61m (+39% profitability), on‑time performance +1pp and customer satisfaction to 84% (airline) / 85% (Holidays).