easyJet has seen its loss before tax increase by 52% annually to £93m in Q1, as a result of its first winter operating investments in Italy and the time requirement for capacity investments to reach maturity.

The airline said these factors offset profit growth in easyJet holidays, which recorded a £50m profit before tax and 20% customer growth, and the continued reduction in disruption costs.

In the three months to 31 December, easyJet recorded a 7% year-on-year increase in its passenger growth, while its available seat kilometres (ASK) capacity jumped by 9%.

Furthermore, the airline has seen record levels in both volume and revenue in the "traditionally busy" January booking period, as bookings continue to build for Summer 2026. The second half of 2026 is 22% sold for the airline and 47% of capacity is sold for holidays.

easyJet chief executive officer, Kenton Jarvis, said: "We have seen continued demand for our flights and holidays over the last quarter, growing airline passenger numbers and load factor with easyJet holidays maintaining its strong growth trajectory attracting 20% more customers year on year.

"Bookings are building well for the summer season, with our largest ever January booking period. We remain committed to delivering sustainable value and continue to progress towards our medium-term target of generating over £1bn in profit before tax."

easyJet has reiterated its outlook for the current financial year, with ASK capacity expected to grow by 7% year-on-year.

Furthermore, it plans for its holiday customer numbers to grow by up to 15%, from a base of 3.1 million customers.

The airline said that its cost per ASK is set to see modest inflation as cost and operational efficiencies, as well as favourable fuel prices, partially offset market-wide cost inflation.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said that the airline’s top line had continued to "roar ahead".

He added: "The package holiday arm delivered another period of impressive growth, with revenue up 26% over the first quarter. Given that the addressable market for package holidays is huge, there’s a long runway ahead for this segment if it can keep nailing delivery.

"With a favourable long-term outlook and a solid balance sheet, there’s room for upside to the current valuation."

---