Low-cost European airline easyJet this morning revealed that latest half-year losses had exceeded £500million, but said it still expects to emerge as one of the winners following the pandemic.
The company, one of the largest carriers in the world with more than 300 planes, has ramped up capacity and it plans to reach near-2019 flying levels this summer.
The airline said that revenue and headline costs for the six months to the end of March were expected to be around £1.5billion and £2.05billion respectively.
It also anticipates headline losses before tax in the range of £535million and £565million.
The firm - whose Scottish routes include Aberdeen-Gatwick, Aberdeen-Luton and Aberdeen-Manchester – said there has been a strong and sustained recovery in trading since the relaxation of travel restrictions, reflecting the pent-up demand coming out of the pandemic.
It added that everyone at easyJet had been deeply shocked and saddened by the Russian invasion of Ukraine and had looked at the best ways to directly support those affected.
The airline went on: “We have been working closely with the UN refugee agency UNHCR to provide seats on flights across our network as well as working with our charity partner UNICEF to support its work on the ground as part of the response effort.
EasyJet says it has very little exposure in Eastern Europe, with no routes into Ukraine, Russia or Belarus.
Additionally, none of its flight routes need to operate into Ukrainian, Belarusian or Russian airspace - and therefore the company is not exposed to re-routing and increased fuel burn.
Chief executive Johan 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, with daily booking volumes for summer currently tracking ahead of those at the same time in 2019.
“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 airline said that it continued to see strong demand for Q4 of the current financial year, especially on leisure routes where easyJet will be the biggest it has ever been.
It added: “This has been boosted by the addition of a further five aircraft-worth of slots in Greece. EasyJet will be the largest carrier into the main Greek Islands this summer.
“EasyJet Holidays also continues to strengthen its position as a significant player in the holidays market, with over 70% of the programme already sold and at significantly stronger margins compared to 2019.”
FTSE 100
The UK’s top share index, the FTSE 100, was down 57 points at 7,560 shortly after opening today, following on from Monday’s loss of 51 points.
Brent crude futures were ahead 2.92% at $101.45 a barrel early this morning.
Companies reporting today
- Half-year results: ASOS
- Trading statements: Deliveroo, easyJet, Liontrust Asset Management, LVMH, Moneysupermarket.com Group, Pennon Group