EasyJet expects recovery in air travel to continue

Bloomberg

EasyJet Plc expects the recovery in air travel to continue through 2023 despite consumers feeling the pinch from inflation, the latest sign of airline optimism following a stronger-than-expected Christmas travel season.
The budget carrier is “cautiously optimistic” for this year despite consumers in its biggest markets enduring the highest inflation rates for decades. While the company hasn’t released formal guidance for this financial year, the comments suggest the airline expects the number of travellers to return close to 2019 levels.
“We’ve seen a number of surveys showing consumers might be saving in some areas, but not on travel or their holidays,” Chief Operating Officer David Morgan said in an interview in Berlin. “We’re not going to stop inflation, but people are prioritising travel and putting off renovation of their bathroom.”
European airlines are sounding increasingly confident over the outlook for travel despite inflation and high energy costs damping consumer spending power. Ryanair Holdings Plc earlier this month raised its full-year profit target following a robust Christmas travel period, saying holiday seasons and fares benefited from pent-up demand.
Morgan said the airline was considering expansion of its EasyJet Holidays business to other European countries after a profitable first full year in the UK. The holiday unit offers package holidays to EasyJet customers, and potential next steps would include launching the product in countries where the airline has major bases, such as the Netherlands, Germany and Spain.
“We are seeing aggressive growth in the UK,” Morgan said of the holidays business.
Morgan said that EasyJet will maintain discipline when it comes to capacity, adding that it was imperative to
restore the business to profitability.