14th Apr 2021 08:40
(Alliance News) -Â easyJet PLC on Wednesday said its first half results were a touch better than expected as it looks to a step-up in travel from the end of May.
Shares in the budget airline were up 2.7% at 948.60 pence in London early Wednesday.
For the six months to the end of March, easyJet expects to post a headline pretax loss around GBP690 million to GBP730 million, which is slightly better than expectations, it said. This compares to a headline pretax loss of GBP193 million a year ago.
Passenger numbers fell 89% to 4.1 million as easyJet flew just 14% of the capacity seen in the first half of the 2019 financial year. This led to revenue for the period slumping 90% to GBP235 million, with passenger revenue down 91% and ancillary revenue decreasing by 87%.
"The effects of the cost-out programme will support improved margins and reduce seasonality for the future. Our capacity forecasting has been accurate and disciplined throughout the pandemic, which has allowed for strong cost control," the company said.
easyJet maintained a "disciplined approach" to capacity and cash management and, as a result, total cash burn during the second quarter was around GBP470 million, better than previous guidance.
Based on current restrictions, easyJet expects to fly up to 20% of 2019 capacity levels in its financial third quarter, to the end of June, with an expectation that capacity levels will start to increase from late May onwards.
"We continue to closely monitor the situation across Europe and with vaccination programmes accelerating, most countries are planning to resume flying at scale in May. We have the operational flexibility to rapidly increase flying and add destinations to match demand," said Chief Executive Johan Lundgren.
Given ongoing levels of short-term uncertainty, easyJet did not provide any further financial guidance for the current financial year. Customers are booking closer to departure and visibility remains limited, it noted.
By Lucy Heming;Â [email protected]
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