The package arm generated profit before tax of £84 million, while easyJet group saw profits in the quarter fall sharply from £286 million in the same period last year to £85 million.
The group said that excluding foreign exchange movements, profit at the tour operating arm increased by 7%, with customers up 8% as the business gained market share. EasyJet holidays revenue jumped 14% to £489 million, while passenger revenue from the airline fell 1%.
EasyJet holidays customer numbers are expected to grow by “low double digits” in the current financial year from a base of 3.1 million. EasyJet holidays has signed an agreement with Expedia Group to expand its city hotel proposition ahead of the launch of Flight Plus Hotel on the airline portal.
As a whole, easyJet highlighted a reduction in consumer demand “following the onset of the Middle East conflict in March and consumer concern about unrealised fuel supply issues”. Increased fuel prices cost the group an extra £105 million year-on-year.
'Attractive pricing driving strong late demand'
The group said it had seen strong demand for late bookings in the month of departure throughout the quarter, adding: “However this was insufficient to fully offset the weaker booking trends experienced following the conflict.”
EasyJet said 2026’s outcome “remains dependent on the important remaining bookings, as well as fuel prices, which continue to be volatile”. EasyJet airline is 68% sold for the fourth quarter, with 2026 capacity expected to be up 3%, while easyJet holidays is 87% sold.
EasyJet chief executive Kenton Jarvis added: “Pricing has been attractive, driving strong late booking demand for our flights and holidays.”
Jarvis said consumer confidence was increasing, with load factors building during the summer peak and the booking curve extending.
Management changes
The group has also revealed key changes in its management. David Morgan, Chief Operating Officer, has returned to flying as an easyJet pilot. Sophie Dekkers, currently Chief Commercial Officer, will succeed him.
Daniel Skjeldam will take Dekkers’ role on 1 September. The former Hurtigruten Chief Executive spent part of his career at Norwegian Air Shuttle as Commercial Director.
Earlier this month, easyJet holidays strengthened its trade team with the appointment of former Bedsonline Account Director Sarah-Jane Penn as Trade Distribution Manager for Birmingham and the South.