Low-cost carrier Easyjet anticipates a reduction in its year-on-year loss for the first half, and welcomes a strong recovery in bookings which should return to pre-pandemic levels this summer.
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Read alsoCovid-19: Easyjet cancels more than 200 flights since this weekend
The
low-cost carrier
forecasts a pre-tax loss of between 535 and 565 million pounds for the six months to the end of March, down from the same period in 2021 when the loss reached 690 to 730 million pounds.
Easyjet attributes this improvement to the management closer to its costs, the increase in additional income, and an “
optimization of its network
”, according to a press release on Tuesday.
The period under review suffered from the Omicron wave of coronavirus which again weighed on international travel around the key Christmas holiday period, but since the start of 2022 many countries, including the UK, have eased considerably or even eliminated all health restrictions, allowing traffic to restart.
“Persistent” difficulties
Easyjet still deplores, however, "
the persistent difficulties linked to Covid-19, the rise in kerosene prices, the end of government employment aid
" put in place at the start of the pandemic, "
and the costs resulting from the increase capacity
" to meet the demand for travel which is picking up.
The British company points out that it has increased its transport capacities throughout the second quarter of its staggered financial year, “
operating in March at 80% of 2019 capacities
”.
Since the lifting of travel restrictions, says Easyjet, "
we have observed a strong and sustained recovery
" in bookings, those for the summer exceeding the level of 2019.
The carrier says it has "
very little exposure to Eastern Europe
" and therefore to the fallout from the war in Ukraine.
“
The closest points in our network (to the conflict) are Budapest in Hungary, Krakow in Poland, which only account for 1.4% of our total
transport capacity”.
“
We are confident that our plans will allow us to return close to our 2019 flight levels this summer and emerge as one of the winners of the recovery.
post-Covid, commented Johan Lundgren, managing director of EasyJet, quoted in the press release.
During a telephone press conference, Johan Lundgren assured that despite a jump in Covid-19 cases among company employees which has led to several hundred flight cancellations in recent days, he is not worried about disturbances for the summer period.
He said he wanted to “
put into context
” the cancellations which represent only a small part of the flights operated by Easyjet.
Read alsoEasyjet halves its pre-tax loss in the first quarter, despite Omicron
When asked whether Easyjet had sold flights it could not operate, the company's boss denied it, arguing that the level of crew absence was "
double
" the normal and reached sometimes 20%.
Asked about the surge in kerosene prices, Johan Lundgren assured that the company was "
properly hedged
" against price fluctuations.
British Airways has also had to cancel flights due to absent employees due to Covid in recent weeks.
Easyjet shares fell 1.62% to 533.80 pence around 0845 GMT.
"
2022 was the supposed year of recovery for airlines like Easyjet, which were devastated during the pandemic when most planes were grounded
," said Victoria Scholar, analyst at Interactive Investor.
“
But the sector is facing new difficulties with the war in Ukraine, rising oil prices, a sharp jump in Covid cases in the UK which affects sick employees and journeys to the UK
” , she adds.