Analysis: Trading updates confirm ongoing demand

A spate of company results and trading updates on a single day last week confirmed the continuing strength of demand for travel. 

Royal Caribbean Group reported the “highest seven booking weeks in the company’s history” from late November to January in fourth quarter and full-year results. Chief executive and chairman Jason Liberty hailed 2025 as “an outstanding year” and said the January wave season was “off to a record start”.

The cruise group, parent of Celebrity Cruises and Silversea as well as Royal Caribbean, reported a 30% year-on-year rise in profit to $4.3 billion for 2025, with revenue rising to $17.9 billion. Profit in the three months to December was up by one third to $800 million.

Liberty forecast double-digit growth in revenue and profit this year, given a near 7% increase in capacity and expected “higher yields”. The group reported almost two-thirds of 2026 capacity “booked at record rates”.

EasyJet holidays saw bookings increase 20% year on year and revenue by 26% in the last three months of 2025, giving a quarterly profit of £50 million, which partially offset the traditional winter losses of its parent carrier.

January saw “record levels” of bookings in volume and revenue for summer 2026, easyJet reported, although the carrier’s pre-tax losses for the three months to December were up by one third year on year to £93 million.

EasyJet passenger numbers rose by 7% in the quarter, the first in the airline’s current financial year, ahead of a 5% increase in capacity. The airline has increased seat capacity by 3% for the full year.

Saga likewise reported strong bookings and pricing in its cruise and travel businesses in a trading update two days before its financial year end. It forecast an improvement in pre-tax profits on the back of “strong performance” across travel.

Group chief executive Mike Hazell reported trading “ahead of expectations, particularly in travel”, with “a material increase in the number of customers taking our hotel and touring holidays” while “demand for our ocean and river cruises continued to grow”.

Saga Holidays saw an 11% increase in passengers and 13% rise in revenue year on year, while Saga Cruises recorded a 10% increase to £394 in average daily revenue per ocean cruise passenger. Saga is due to publish its annual results in April.

Wizz Air provided the only sour note in a quadruple set of industry results last week ( January 29) with operating losses for the three months to December showing a 63% deterioration to €124 million despite a 10% rise in revenue and a 12.5% increase in passenger numbers.

The carrier continues to be dogged by engine maintenance issues with 33 aircraft grounded at the end of December and an average 20-25 forecast to be on the ground throughout 2026-27.

However, chief executive József Váradi insisted: “We are steadily recovering from the engine-related aircraft groundings."