EasyJet Q3 Pretax Loss Widens to £93 m, Starlink Wi-Fi Economics Unfavourable

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EasyJet reported a headline pretax loss of £93 million for the three months through December as it absorbed expansion costs in Italian airports. The airline’s CEO said talks with Elon Musk’s Starlink on onboard Wi-Fi are ongoing but current economics are not viable.

1. EasyJet Explores Starlink Connectivity

During a board meeting on Thursday, Chief Executive Kenton Jarvis confirmed that EasyJet has held preliminary discussions with Elon Musk’s Starlink division to equip its fleet with satellite-based broadband. Jarvis noted that although the partnership could deliver high-speed Wi-Fi to passengers across Europe, the current cost estimates—projected at £5 million to £7 million per aircraft for installation and annual service fees of approximately £500,000—do not yet align with the carrier’s low-cost model. The airline will continue to monitor Starlink’s pricing evolution and passenger demand for uninterrupted connectivity on medium-haul routes into 2026.

2. Quarterly Pretax Loss Widens to £93 Million

In its trading update for the three months ended December 31, EasyJet reported a headline pretax loss of £93 million, compared with a £12 million profit in the same period last year. Passenger numbers climbed 16% year-on-year to 29.3 million, while revenues rose 12% to £1.42 billion, driven by strong demand on domestic UK and French routes. However, a combination of elevated fuel costs—up 22% versus last winter—and higher maintenance expenses related to its A320neo fleet limited margin recovery, leaving the loss deeper than analysts’ consensus of a £70 million shortfall.

3. First-Quarter Loss Widens as Italian Expansion Costs Bite

EasyJet’s first quarter (October–December) operating loss expanded to £120 million, up from a £80 million loss a year earlier, as the carrier accelerated its presence in Italy. The airline opened three new bases—Milan Malpensa, Naples and Venice—adding 15 aircraft and launching 25 new routes. While load factors held steady at 91%, start-up costs for ground handling, crew recruitment and airport charges added £45 million to the quarter’s expenditure. Management reiterated its full-year target of returning to profitability in the second half, contingent on oil prices stabilising below $80 per barrel and continued demand on leisure routes.

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