UK budget carrier EasyJet is strategically investing in longer route sectors intended to reduce winter losses, with expectations that the routes will mature over the upcoming winter season.
The airline says, in its first-half results statement, that these longer leisure destinations have generated productivity and utilisation benefits.
But the routes also bring additional costs – such as fuel and crewing – and the carrier adds that they have “naturally” required “some price stimulation”.
Sector length rose by 6% over the first half, contributing to an overall first-half capacity hike of 12%. The longer sectors weighed on the airline’s unit revenue figures, which declined by 6%.
EasyJet turned in a headline pre-tax loss of £394 million ($529 million) and a net loss of £292 million over the six months to 31 March.
It says its results were affected partly by the timing of the Easter 2025 holiday period, which fell outside of the first half, and the capacity investments.
“The important capacity investments in the period into longer leisure destinations on top of additional city destinations…are expected to mature next winter and beyond, providing a platform to structurally reduce winter losses,” says the carrier.
EasyJet has opened over 200 new routes in the current fiscal year – and closed around 50, as part of a “continued focus on capital allocation” – giving its network a net increase of around 150.
This winter expansion has mainly concentrated on winter beach and non-European Union destinations.
Over the first half the carrier introduced another eight Airbus A320neo-family jets, with no aircraft leaving, taking the fleet to 355.
These include 19 A321neos and 74 A320neos, plus 180 older A320s and 82 A319s. It has an order backlog with Airbus of 291 firm aircraft and 100 purchase rights.
