DAVY VIEW

EasyJet has reported a FY25 headline PBT of £665m, +9% year-on-year (yoy) (consensus: £652m (Davy: £664.3m). EasyJet holidays delivered £250m PBT, achieving its medium-term target early and the target has been upgraded to £450m PBT by FY30. Airline ASK capacity was ahead by 9% yoy, while RASK was down 3% yoy following investment into longer leisure sectors. Headline CASK improved 3% yoy, driven by fuel tailwinds (fuel CASK -7% yoy). For FY26, capacity is expected to grow by c.7%, with an average sector length increase of c.4%. For H126, the company has made structural winter capacity investments; however, it has stated “revenue maturity benefits are being seen although are taking longer than we originally anticipated”. We expect some downgrades to H126 numbers and resultingly to FY26 numbers.