EasyJet sees summer flights approaching pre-Covid levels

Bloomberg

EasyJet Plc reiterated its plan to gear up operations to near pre-pandemic levels through the summer high season, as an easing of travel restrictions unleashes pent-up demand.
Europe’s second-biggest discount carrier managed to narrow its estimated loss in a fiscal first half roiled by the rise of the omicron variant of Covid-19, and has now turned its focus to bringing back capacity. Booking volumes for summer are currently tracking ahead of the same time in 2019, the company said.
EasyJet and other carriers have seen a turnaround in ticket sales after authorities in Europe decided to live with the less-severe Covid infections and loosened travel curbs. The Luton, England-based carrier restored 50% of its 2019 flying schedule in January, but was up to 80% by March. The transition has been challenging, with EasyJet struggling to contend with rostering issues caused by renewed Covid-19 outbreaks among staff.
“We’re confident in our plans for this year and beyond which will see EasyJet emerge as one of the winners in the recovery,” Chief Executive Officer Johan Lundgren said in an interview. “We remain absolutely focused on creating shareholder value.”
The company estimates its loss narrowed to between 535 million pounds and 565 million pounds ($696 million-$735 million) for the first half ended on March 31, compared with a 701 million-pound loss in the year-earlier period.
Rising energy costs, the staffing issues and ramp-up challenges mean “the road to a full recovery remains long and bumpy,” said Allegra Dawes, senior airlines analyst at Third Bridge.
The flying schedule for the current quarter will be about 90% of 2019 levels, the company said in a statement Tuesday. EasyJet is seeing strong demand in Greece, and expects to be the biggest carrier to the Greek islands this summer. “The leisure destinations — the beach routes — are doing very well for us. So those traditional destinations around the Mediterranean is doing really well,”
Larger rival Ryanair Holdings Plc has also forecast a strong summer, despite inflation’s tightening effect on household budgets.
EasyJet and larger rival British Airways have had to cancel flights over the Easter holiday period, with airports also contending with resource and staffing shortages.
The other major challenge has been fuel prices, which have surged since the Russian invasion of Ukraine.