easyJet FY25 results: profit up, holidays flying, dividend lifted
easyJet has posted a third straight year of earnings growth. Headline profit before tax rose 9% to £665 million for the twelve months to 30 September 2025, with both the airline and the holidays arm contributing – but the stand-out was easyJet holidays, which hit its medium-term profit goal early and has now upgraded its target to £450 million PBT by FY30.
| Key numbers (FY25) | |
|---|---|
| Total revenue | £10,106 million (+9%) |
| Headline EBIT | £703 million (+18%) |
| Headline PBT | £665 million (+9%) |
| Airline headline PBT | £415 million (2024: £420 million) |
| easyJet holidays PBT | £250 million (+32%) |
| ROCE | 18% (+2 ppts) |
| Net cash | £602 million (liquidity £4.8 billion) |
| Dividend proposed | 13.2p per share (20% of headline PAT), payable 27 March 2026 |
| Seats flown | 104.0 million (+4%) |
| ASK growth | +9% (longer routes) |
| Load factor | 89.8% (+0.5 ppt) |
What drove the result: airline steady, holidays stellar
Group revenue rose 9% to £10.1 billion. The airline expanded into longer sectors and opened new bases at Milan Linate, Rome Fiumicino and London Southend while closing underperforming bases in Toulouse and Venice. That shift lifted available seat kilometres (ASKs) by 9% and average sector length by 6% to 1,293 km.
Longer routes do dilute unit revenue, and you can see it in the numbers: airline revenue per ASK (RASK) fell 3% to 6.45p (H2 down just 1%). The cost side did its job though. Headline airline CASK ex fuel edged down 1% to 4.46p and fuel CASK fell 7% to 1.68p, taking total CASK down 3% to 6.14p. Operationally, on-time performance improved 3 ppts to 72% and customer satisfaction hit 80% – the best in over a decade.
The airline delivered £415 million of headline PBT, broadly flat year on year as new route investments take time to mature and winter remains tougher. Management called out around £20 million invested for the summer expansion into Milan and Rome and a further £30 million in the first winter at those airports.
easyJet holidays was the star. Customers grew 20% to 3.09 million, revenue (ex-flight) rose 27% to £1,440 million and PBT jumped 32% to £250 million with a 13% margin (incl. flight revenue). Having met its target early, the division now aims for £450 million PBT by FY30. Customer satisfaction was a healthy 83%.
Balance sheet strength and a higher dividend
This is one of the cleanest balance sheets in European aviation. Net cash increased to £602 million, helped by free-cash-funded delivery of nine A320 family aircraft and the opportunistic repurchase of eight leased aircraft back into ownership, which will lower ownership costs. Liquidity stands at £4.8 billion, including an undrawn $1.7 billion revolving credit facility running to at least 2030. Credit ratings remain investment grade (Moody’s Baa2/stable; S&P BBB+/stable).
Shareholders are set for a higher ordinary dividend of 13.2p per share, or £100 million in total, payable on 27 March 2026 to holders on the register at 20 February 2026. This keeps the policy of paying 20% of headline profit after tax.
Fleet, upgauging and sustainability
The fleet ended the year at 356 aircraft, including 94 A320neo family aircraft. The order book runs to FY34 for a further 290 A320neo family aircraft plus 100 purchase rights. Deliveries step up to 17 in FY26, 30 in FY27 and 43 in FY28, with A319 retirements accelerating. That “upgauging” plan is central to lowering unit costs and improving margins through more seats per flight and better fuel efficiency.
On sustainability, easyJet says it is on track for a 35% carbon intensity reduction by 2035 (SBTi-validated). External ESG scores were highlighted, including a top global airline ranking from Sustainalytics in the year (score 18.0).
Outlook: FY26 guidance and bookings
- Capacity: FY26 ASK growth of about 7% on sector length up ~4%. Seat growth of 3%.
- Bookings: Q1 FY26 is 81% sold (+2 ppts YoY); Q2 FY26 is 26% sold (+1 ppt); easyJet holidays H1 FY26 is 80% sold.
- Costs: total headline CASK expected to see “modest inflation”. Efficiency actions and softer fuel partly offset market-wide cost increases (environmental costs, wages, maintenance, navigation and airport charges).
- New bases in FY26: Newcastle (+3 aircraft) and Marrakech (+3 aircraft).
- Holidays: customers planned to grow by up to 15% from the 3.1 million FY25 base; average selling price for H1 up high single digits.
- Hedging: jet fuel c.80% hedged for H1 FY26 at $717/MT and 54% for H2 FY26 at $690/MT. USD exposure also well hedged; carbon obligations largely covered for CY25 and CY26.
Management reiterated the medium-term ambition of delivering over £1 billion PBT for the Group. The holidays upgrade to £450 million by FY30 underpins that path, while upgauging is expected to deliver the heavier cost benefits in FY27-FY28.
My take: why this matters for investors
What looks positive
- Quality growth: headline EBIT up 18% and ROCE at 18% shows the strategy is delivering real returns, not just revenue growth.
- Holidays flywheel: £250 million PBT and a bigger £450 million FY30 target signal that the package-holiday platform is gaining scale and pricing power, with 83% customer satisfaction to boot.
- Operational improvements: better punctuality and satisfaction usually translate into lower disruption costs and stickier demand.
- Fortress balance sheet: £602 million net cash and £4.8 billion liquidity give flexibility to weather shocks, fund capex and keep dividends flowing.
What to watch
- Airline unit revenue pressure: RASK fell 3% for the year as longer sectors grew and new routes mature. H2 moderation (-1%) is encouraging, but recovery needs to continue into FY26.
- Winter drag and investment payback: easyJet is leaning into winter capacity and newly opened Italian bases. Management expects revenue maturity over “coming years”, not quarters.
- Industry-wide cost inflation: environmental charges (ETS/SAF), navigation and wage inflation are running hot. Guidance is for modest CASK inflation in FY26; delivery of upgauging benefits in FY27-FY28 is key.
- Aircraft deliveries: the step-up to 30 and 43 deliveries in FY27/FY28 is central to the margin story. Delivery timing remains a sector-wide variable.
Useful definitions
- PBT: profit before tax.
- EBIT: earnings before interest and tax – a clean view of operating performance.
- ASK: available seat kilometres – capacity measure; seats times distance flown.
- RASK: revenue per ASK – unit revenue. Down 3% to 6.45p in FY25.
- CASK: cost per ASK. Total CASK down 3% to 6.14p; ex fuel 4.46p (-1%).
- ROCE: return on capital employed – reached 18% in FY25.
Want more detail?
A replay of the analyst Q&A is available here: https://brrmedia.news/EZY_FY25.
Bottom line
Three straight years of earnings growth, a stronger balance sheet and a rising dividend paint a solid picture. The holidays engine is now a major profit driver with a higher target, while the airline arm is laying the groundwork for the next leg of efficiency gains through upgauging and network optimisation. There are moving parts – especially winter profitability and unit revenue – but the direction of travel supports easyJet’s medium-term goal of more than £1 billion in PBT.
