DAVY VIEW

easyJet has reported a Q1 headline loss before tax of £93m (Q1 25 loss: £61m). The result was driven by RASK flat and total CASK +2%. Cask inflation reflects the first winter operating at Milan Linate and Rome Fiumicino (c.£15m losses) and a continued competitive environment in specific markets. easyJet Holidays reported a PBT of £50m (Q1 25: £43m) and customer growth of 20%. For Q2, RASK is expected to be up low-single-digits year-on-year (yoy), reflecting revenue maturity benefits and a modest benefit from early Easter. Unit cost inflation is expected to be weighted towards the first half. We expect H1 consensus PBT to move to c.-£485m due to FY CASK inflation weighted to H1 (consensus: -£441m; Davy: -£429m.). We don’t expect material changes to FY26 estimates; as always, summer (H2) remains key.