EasyJet holidays expects 25% rise in customers this year after profits rose by 40% or £12 million to £43 million in the three months to December 31.
Revenue for the budget airline’s in-house tour operation rose by 36% year-on-year to £247 million.
EasyJet is on course to achieve a medium target of £1 billion in annual profits as traditional winter losses were cut.
Overall losses in the quarter fell by £65 million year-on-year to £61 million as passenger carryings rose by 7% to 21.2 million based on capacity of 24.1 million seats.
The airline said in a trading update: “The traditionally busy Easter period is seeing strong demand and bookings continue to build for summer 2025.
“At this early stage of the year, the current booking trends are supportive of full year ’25 consensus.
“We remain focused and confident in the progress towards our medium term target of sustainably generating over £1 billion of profit before tax.”
The group’s performance in the first quarter of its financial year “significantly improved as demand for our primary airport network and package holidays continued, alongside cost control and favourable fuel prices”.
Overall losses for the six-month winter period are expected to reduce when adjusted for the timing of Easter.
Six new A320neo family aircraft were delivered in the quarter, a seventh aircraft was delivered in January and another two are expected to be operational by peak summer.
Chief executive Kenton Jarvis said: “EasyJet performed well in the quarter reducing Q1 losses by 52% year on year while flying 7% more customers to an even greater choice of destinations across the network.
“EasyJet holidays continued its growth, achieving around a 40% increase in profits during the period.
“Looking to this summer, we have seen continuing demand for easyJet’s flights and holidays where we have one million more customers already booked, with firm favourites like Palma, Faro and Alicante as well as new destinations like Tunisia and Cairo proving popular.
“All of this demonstrates positive progress towards our medium term target to deliver more than £1 billion of profit before tax.”