EasyJet Claims Strong Recovery Despite Daily Losses

 

The UK’s largest low-cost carrier claims to be making a “solid rebound” from the coronavirus crisis.

However, EasyJet estimates a daily loss of more than £3 million over the next six winter months. The airline expects to lose roughly £550 million in the next 6 months.

The chief executive, Johan Lundgren said: “We remain confident in our plans which will see us reaching near 2019 flying levels for this summer and emerge as one of the winners in the recovery.”

The statement highlights “ongoing Covid-19 problems.” It happened on the same day that the airline cancelled 32 flights to and from its major hub, Gatwick airport, affecting around 5,000 passengers.

Many vacation flights were canceled on Wednesday, including those to Sardinia, Sicily, Ibiza, and Venice. To compensate travellers, the airline offered alternate flights. EasyJet has cancelled almost 1,000 flights in the last two weeks while claiming that this represents just 6% of its overall capacity. During March, its performance was at around 80%, the level obtained in 2019.

Capacity is presently shared 50:50 between the United Kingdom and the European Union. The ratio was 30:70 when British travel restrictions were at their most severe.

Mr Lundgren said: “easyJet’s performance in the second quarter has been driven by improved trading following the UK government’s decision to relax testing restrictions with an extra boost from self-help measures which saw us outperform market expectations.

“Since travel restrictions were removed, easyJet has seen a strong recovery in trading which has been sustained, resulting in a positive outlook for Easter and beyond.”

“EasyJet risks increased expenses due to fuel pricing and operation ramp up, as well as continuous operational challenges as a result of Covid-19 and staff,” said Allegra Dawes, senior airlines analyst at Third Bridge.