Budget airline easyJet reported a wider first-quarter loss, driven by investments in new routes at Milan Linate and Rome Fiumicino airports. The company posted a pre-tax loss of £93 million, compared to £61 million in the same period last year, missing analyst expectations. Despite the loss, passenger numbers increased, and revenue rose, indicating continued demand for flights.

EasyJet's holiday business remained strong, contributing £50 million in profit. The airline’s shares rose slightly following the announcement. The wider loss reflects the costs associated with expanding its network. The company is investing in key airports to capture market share. This strategy, while initially costly, is aimed at long-term growth and profitability.

Looking ahead, easyJet expects seat capacity to grow and anticipates a rise in RASK. Forward bookings for the second quarter are up year-over-year. The airline maintains its medium-term target of generating over £1 billion in profit. This suggests confidence in its strategy and the strength of the summer booking season.

Kenton Jarvis, easyJet’s CEO, noted strong booking trends and customer growth. With 77% on-time performance and rising customer satisfaction, easyJet is also focusing on operational improvements. Investors will be watching for continued growth in passenger numbers and holiday bookings to validate the new route investments.