EasyJet sees sales picking up from late May

Photo: EPA

The budget carrier EasyJet announced it expected to return to strong sales by end-May as Covid restrictions ease in most countries and vaccination rollout in Europe gains speed, Reuters reported. The carrier emphasized a jump in sales due to summer travel rebound is vital to offset losses caused by the pandemic grounding of EasyJet’s fleet. It elaborated that in its April to end of June quarter it would fly up to 20% of 2019 capacity levels.

The return to flying at scale will help boost the airline’s finances which have been squeezed during the pandemic. It flew just 14% of 2019 capacity in the October to end of March period.

For the six months ended in March, the airline said it expected to report a loss before tax in the range of 690 million pounds to 730 million pounds, after it made stronger cost reductions than analysts had forecasted. EasyJet said it has 2.9 billion pounds of liquidity and was well-positioned to capitalise on a recovery in flying. “We maintain significant flexibility to ramp capacity up or down quickly depending upon the unwinding of travel restrictions and expected demand across our European network,” said EasyJet in its statement. Uncertainty remains about when travel can properly resume. The UK government’s plan for kicking off a summer getaway season disappointed the industry last week after it failed to include a start date for travel or list which countries which would be open for travel.

Similar articles

  • Pandemic piles up Heathrow Airport losses

    Pandemic piles up Heathrow Airport losses

    With pandemic still dragging back the international transport links, UK biggest Heathrow Airport announced it was piling new losses, amounting at millions of pounds, BBC reported. Heathrow dipped a further £329m into the red in the first three months of the year, bringing total losses since the start of the pandemic to £2.4bn. Just over 1.7 million passengers travelled through the airport during the quarter, down 91% on the period in 2019.

  • Chip shortage cripples global car industry

    Chip shortage cripples global car industry

    Jaguar Land Rover (JLR) has become yet another automotive producer that was forced to decrease and even stop production activities in its main facilities due to acute global semiconductor chip shortage, BBC reported. The chip shortage affects badly the car production sector as Covid-19 restrictions in most industrial countries have been eased and customer demand surges. However the car production sector has to compete with computer, telecoms and other hi-tech industries for the limited global chip supply.