The carrier has upgraded its in-house operator's profit target after it achieved its medium-term £250 million aim early, one set back in 2023.
EasyJet holidays grew its pre-tax profits in the year to 30 September (FY25) by nearly a third (32%) from £190 million to £250 million.
This came off the back of a 27% increase in revenue to £1.44 billion, which outstripped passenger growth (+20%) thanks to a 5% increase in average selling price from £668 to £698.
The operator's profit margin also grew by a percentage point year-on-year from 12% to 13%.
'Even more ambitious goal'
EasyJet holidays' performance was detailed in the airline's full-year results, issued on Tuesday morning (25 November).
"EasyJet holidays continues to perform strongly, achieving a PBT [profit before tax] of £250 million in FY25, meeting our target ahead of schedule," said the carrier. "As a result, we've set a new, upgraded target of achieving £450 million PBT by FY30."
Kenton Jarvis, chief executive of easyJet, added: "EasyJet holidays is today launching an even more ambitious goal having achieved its target early."
EasyJet holidays carried 3.1 million passengers in its 2024/25 full year, up from 2.6 million a year earlier (+20%), which the group claims has extended its share of the UK package holiday market from 7% to 10%.
These passengers include approximately 400,000 "agency commission customers", i.e. customers who booked through travel agents.
Its £60 million year-on-year increase in pre-tax profits was the key contributor to easyJet recording a £55 million uptick in PBT, with the airline recording a small "broadly flat" £5 million decline in PBT.
"The airline performance was complemented by strong easyJet holidays delivery," it said.
Growth mission
EasyJet said improving the performance of its airline had proved "more challenging than originally anticipated" owing to the pace at which new routes deliver returns, as well as "the wider geopolitical, macroeconomic and competitive environment in specific markets".
Another factor, it said, was its £20 million investment in new bases in Milan and Rome, which are still finding their feet.
EasyJet expects easyJet holidays customers to grow by up to 15% over the coming year. The operator extended its Atol by 17% from 3,055,272 authorisations to 3,455,570 at the end of September.
The operator is 80% sold for the first half of 2026 (six months to the end of March 2026) with selling prices up in the "high single digit" range.
EasyJet said it would make "targeted investments" in its operator arm "as the business moves into the next phase of growth", with a view to strengthening its customers base across the beach and city sectors.
Aims include increasing brand awareness via alternative channels, such as through a tie-in with Tesco Clubcard and with the launch last month of a new luxury proposition.
