Here’s how easyJet is able to offer cheaper seats over other airlines
Low-cost carrier easyJet has published its half-year results for the six months ending 31 March 2025, with the group expecting a positive outlook for the year on the back of strong bookings and an increased uptake of holidays.
Headline pre-tax losses came in at £394 million, up 13% year-on-year for the six months ended 31 March.
Airline revenue increased by 6% to £3,134 million (H1 2024: £2,957 million). This was primarily due to an increase in passengers of 8%, from flying 6% more seats and increasing load factor to 88%, 1 percentage point higher year on year, the group said.
This coupled with a 6% increase in average sector length, meant that available seat kilometres (ASK) capacity increased 12% in the first half. This investment in capacity growth, alongside the timing of Easter, resulted in airline revenue per available seat kilometre (RASK) decreasing by 6% to 5.64p (H1 2024: 5.98p).
Passenger numbers in the quarter increased to 18.2 million, up from 16.8 million compared to Q2 FY24.
“We continue to see strong demand for easyJet’s flights and holidays, as we attract more customers through our great fares, friendly service and unrivalled network of destinations,” said Kenton Jarvis (CEO of easyJet).
“We are executing well against our strategy to drive efficiency and enhance our customer experience both in the sky and on the ground. In addition, our commitment to giving customers an even greater choice of flights and holidays will also see us continuing to grow both in Europe and the UK, where we will be launching a new base in Newcastle from next spring.
“We remain focused on delivering another record summer this year, expecting to drive strong earnings growth as we continue to progress towards our target of sustainably generating over £1 billion of annual profit before tax.”
How easyJet’s low-cost model works
As part of its results presentation, easyJet explained how its low-cost operating model works.
The airline noted that it has a cost advantage over its major competitors on the primary network that it operates and that it remains constantly disciplined around its costs.
“Alongside cost actions, easyJet is focused on margin through its network optimisation, effective pricing management and ancillaries driving higher yields,” it said.
“Our focus on increased productivity and utilisation offset inflationary cost pressure in the first half of the 2025 financial year, which resulted in a 4% year-on-year reduction of non-fuel units costs.”
One of the biggest secrets behind its success is being disciplined around costs, with the group introducing the following initiatives to help bring down expenses:
- Insourcing of all line maintenance and the purchase of an established heavy base maintenance facility in Malta: This enables easyJet to have greater control over maintenance, reducing costs incurred and improving the quality of maintenance fulfilled.
- Increasing automation of self-service management: This includes increasing digitalisation of customer flows and reducing the need for contact centre support.
- Use of data and automation to drive efficiency: Predictions from airline planning software SkySYM have given easyjet flexibility in resilience measures built into the schedules.
- Increased productivity and utilisation: This drove cost savings in the first half of the year, easyJet said.
- Upgauging of the fleet: easyJet expects that efficiency benefits will be unlocked as A319s leave the fleet, being replaced by A320neo family aircraft.
