12th Apr 2022 08:43
(Alliance News) - Airline easyJet PLC on Tuesday said it expects a narrowed half-year loss with current operations running broadly as planned despite wide-spread reports of disruption.
For the first half to March 31, the budget airline expects to report revenue of GBP1.50 billion, with headline costs around GBP2.05 billion. It has guided for a headline pretax loss in the range of GBP535 million to GBP565 million, which would be narrowed from GBP701 million year-on-year.
"First half losses have reduced year on year, outperforming expectations, as self-help measures including network optimisation, ancillary products, and a continued cost focus deliver. This result is despite ongoing challenges from Covid-19, rising fuel prices, the removal of furlough support and incremental costs associated with ramping up operations," Luton-headquartered easyJet explained.
The firm said summer bookings for the last six weeks have tracked ahead of pre-pandemic levels as travellers book closer to departure.
easyJet expects its third quarter capacity to be about 90% of the same period in 2019, while capacity in the fourth quarter should "remain near" the level seen in the final quarter of 2019.
"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 FY19," said Chief Executive Johan Lundgren.
The company added that it has "flown 94%" of its planned scheduled in the last seven days, despite an increase in staff testing positive for Covid-19 as well as normal operational disruption such as weather.
easyJet's update comes after dozens of UK flights were cancelled on Monday as airlines continue to struggle with staff shortages.
International Consolidated Airlines Group SA's British Airways axed at least 64 domestic or European flights to or from Heathrow. easyJet cancelled at least 25 flights to or from Gatwick, affecting routes between the West Sussex airport and Amsterdam, Copenhagen, Glasgow and Milan.
There has been a surge in demand for flights as many families have travelled abroad for the school Easter holidays, which are the first since the UK's coronavirus restrictions for international travellers were dropped.
Airlines have been keen to attract as many bookings as possible after suffering huge losses due to the virus crisis but are struggling to cope with staff shortages. The issue is partly caused by difficulties finding new recruits and getting their security checks processed after thousands of jobs were cut during the pandemic.
Shares in easyJet were down 2.4% at 530.18p in London early Tuesday.
By Lucy Heming; [email protected]
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