easyJet announces ‘strong recovery’ from pandemic despite lip of £ 3m a day over winter

The UK’s largest budget airline claims to be “recovering heavily” from the coronavirus pandemic.

But easyJet predicts daily losses of more than £ 3 million for the six winter months from October 2021 to March 2020.

In its latest trade statement, easyJet says winter losses have declined year on year, outpacing market expectations. The airline still expects to lose around £ 550 million over the last six months.

CEO Johan Lundgren said: “We remain confident in our plans, thanks to which we will reach almost 2019 levels of flight this summer and become one of the winners in the recovery.”

The statement mentioned “persistent problems with Covid-19”. It happened on a day when the carrier canceled another 32 flights to and from the main base, Gatwick Airportwhich affected about 5,000 passengers.

Numerous holiday flights were canceled on Wednesday, including Sardinia, Sicily, Ibiza and Venice. The airline must provide alternative departures and reimburse passengers.

In the last two weeks, easyJet has canceled more than 1,000 flights, although this is only 6 percent of total capacity.

In March, it is operating at about 80 percent of the level reached in 2019, the last full pre-pandemic year.

Power is now 50:50 divided between the UK and the European Union. When the British travel restrictions were the most draconian, the ratio was 30:70.

Mr Lundgren said: “easyJet’s performance in the second quarter was driven by improved trade following the UK government’s decision to ease restrictions on testing with further tightening of self-help measures that exceeded market expectations.

“Following the lifting of restrictions on easyJet travel, there has been a strong resumption of trade that is steady, leading to a positive outlook for Easter and beyond.”

Unlike its two pan-European competitors, Ryanair and Wizz Air, the airline has very little impact on Eastern Europe. Flights to Moscow were suspended eight years ago, and easyJet has never flown to Belarus or Ukraine.

The statement said: “Because of our geographical footprint, none of our flights should fly into Ukrainian, Belarusian or Russian airspace, and therefore we are not subject to redirection and increased fuel consumption.”

Allegro Doves, a senior analyst at Third Bridge, said: “EasyJet is facing rising costs due to rising fuel prices and operation, as well as prolonged operational difficulties resulting from Covid-19 and staff shortages.

“The road to full recovery remains long and difficult.”

easyJet announces ‘strong recovery’ from pandemic despite lip of £ 3m a day over winter

Source link easyJet announces ‘strong recovery’ from pandemic despite lip of £ 3m a day over winter

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