easyJet has stated that it expects to report a headline loss before tax of between £540m and £560m in the first half of the 2026 financial year, despite demand remaining positive in the first half.

The airline reported that it delivered a load factor of 90% in the six months to 31 March, marking a two percentage point year-on-year increase.

Furthermore, its holidays division recorded "continued strong demand", as customer numbers rose by 22% in this period.

easyJet said its underlying first-half results were broadly in line with expectations, with revenue and costs in line, excluding approximately £25m of additional fuel costs in March due to the Middle East conflict and around a £30m increase in legal provisions across a number of historic cases.

It stated that the conflict has introduced near term uncertainty around fuel costs and customer demand, and "as expected", the booking curve has shorted in recent weeks.

Currently, its third and fourth quarter bookings stand at 63% and 30% respectively, which is a two percentage drop year-on-year.

easyJet stated that as it navigates the current operating environment, it remains firmly focused on executing multiple self-help initiatives to deliver medium-term financial targets. These initiatives will be included in its full half-year results on 21 May.

Chief executive officer at easyJet, Kenton Jarvis, said: "easyJet saw continued positive demand in the first half, driven by our great value flights and holidays, alongside a continued focus on our operations and customer experience.

"Despite these positives, our H1 financial performance worsened year on year, impacted by the conflict in the Middle East and the competitive environment in some markets. Following our busiest Easter holiday period ever, the operational ramp up into peak summer continues as planned.

"easyJet’s financial strength from our investment grade balance sheet and £4.7bn of liquidity mean we are well placed to navigate current geopolitical challenges while remaining focused on our medium-term targets.”

Following the update, shares in the airline fell by over 5%, marking a 22% drop in its share price in the last year.

Despite the recent uncertainty, investment director at AJ Bell, Russ Mould believes the latest update from easyJet was not unexpected.

He concluded: "EasyJet had already lost one quarter of its market value this year as investors fretted about higher costs and a summer of disruption if fuel is scarce. A lot of bad news was already priced in, meaning the latest trading update is only confirming what people expected and not catching the market off guard.

"The airline is in good financial shape to withstand another period of disruption, and it is well-versed in dealing with setbacks given past experiences with air traffic control strikes and the stop-start pandemic backdrop.

"So much depends on what happens next with the Middle East crisis. A swift resolution could remove cost pressures and trigger a flurry of bookings. A prolonged crisis could see demand dwindle further and a succession of cancellations if fuel supplies run dry or are rationed in various parts of the world."

---