Easyjet reports huge loss... but says it is able to ramp up flights quickly
EASYJET HAS revealed widened half-year losses and expects to fly only around 15 per cent of its pre-pandemic flight programme until the end of June despite international leisure travel restarting this week.
The low-cost airline reported underlying losses of £701m for the six months to March 31 against £193m a year ago.
It added that while capacity will still be only around 15 per cent of 2019 levels in its third quarter, it expects to ramp up its programme from June onwards to meet “pent-up demand”. The Luton-based carrier has added more than 105,000 seats on flights when the Government announced the so-called green list countries – from which UK travellers will not need to quarantine on return.
Easyjet is the latest airline to report significant decline in revenues and flights, with Ryanair having earlier this week confirming a similarly dire picture for the past 12 months.
Johan Lundgren, chief executive of easyJet, said: “We are ready to significantly ramp up our flying for the summer with a view to maximising the opportunities we see in Europe.
We have the ability to flex up quickly to operate 90 per cent of our current fleet over the peak summer period to match demand.”
“We know there is pent-up demand, we saw this again when green list countries were released and added more than 105,000 seats, and so we look forward to being able to help many more people to travel this summer,” he added.
The group saw revenues plummet 90 per cent to £240m in its first half as the recent ban on international leisure air travel from Britain saw passenger numbers tumble 89.4 per cent.
On a reported basis, half-year pre-tax losses stood at £645m against losses of £353m a year earlier. But the group limited losses by slashing costs under a programme to save around £500m over the full year in response to the devastating impact of the pandemic on the travel sector.
We are ready to significantly ramp up our flying for the summer. Johan Lundgren, chief executive of easyJet.