Budget airline EasyJet (EZJ) talked up its ‘strong, sustained recovery’ in bookings since the UK lifted Covid-19 restrictions but still expects to have lost over half a billion pounds in the six months to 31 March 2022.
EasyJet, Europe’s second biggest discount flyer, said that bookings over the last six weeks have run ahead of the same period in 2019, the last comparable period before the outbreak of the pandemic.
The airline said it expects to fly at nearly 90% capacity over the current quarter (to 30 June) and at close to its pre-pandemic capacity in the summer quarter (to 30 September).
The total number of passengers flown was over nine times the level of a year ago at more than 11.5 million, while the company also succeeded in squeezing more revenue out of each booking by selling ancillary services such as vacations and car rentals. Ancillary revenue per seat sold rose to £19.56 in the first half from £12.47 a year earlier.
Yet the budget airline said its half-year losses would still be well in excess of half a billion pounds, guiding investors to a range between £535 million and £565 million. This is much less than the £618 million consensus forecast and well below last year’s equivalent £701 million loss. The airline reported a full year loss of £1.1 billion last year.
STAFF COVID SICKNESS NOT OVER YET
The airline’s chief executive warned that the recent swathe of staff sicknesses, many Covid-related, has still to run its course. Falling workforce absences will come in time, said Johan Lundgren, but ‘this is something that we don’t see yet’ the airline boss said.
In response to soaring fuel costs, EasyJet said it has hedged nearly two-thirds of its fuel requirements for the next six months at a price of around $571 a metric ton or $78.11 a barrel. Crude oil has traded well above $100 a barrel since Russia’s invasion of Ukraine.
EasyJet shares have declined more than 11% so far in 2022 and are down more than 30% over the past year. The stock nudged 0.7% higher in reaction to the first half commentary to 546.4p.
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