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easyJet looks to “flex up” to cater for pent-up demand for holidays

Published: 08:57 20 May 2021 BST

easyJet plc - easyJet looks to “flex up” to cater for pent-up demand for holidays

easyJet PLC (LON:EZJ) chief executive Johan Lundgren said the company is able to “flex up” quickly as the budget airline looks to pent-up demand for leisure travel as Coronavirus restrictions recede.

The company, in its first half results, highlighted that its the “largest operator to green list countries” and noted that European governments are easing restriction to re-open travel.

“We are ready to significantly ramp up our flying for the summer with a view to maximising the opportunities we see in Europe,” Lundgren said. “We have the ability to flex up quickly to operate 90% of our current fleet over the peak summer period to match demand.

"We know there is pent-up demand - we saw this again when Green list countries were released and added more than 105,000 seats - and so we look forward to being able to help many more people to travel this summer.

easyJet said it expects to fly around 15% of its 2019 capacity level during the third quarter though it sees capacity rising from June onwards.

It noted the likelihood of short notice changes to travel restrictions that will impact load factors, resulting in additions or cancellations whether restrictions are eased or increased by authorities.

The company said it maintains significant flexibility to ramp capacity up or down quickly.

In terms of its financial results, the company reported a £645mln pre-tax loss for the half-year, against a £353mln loss in the same period a year ago.

easyJet described its balance sheet as robust, noting total liquidity of £5.5bn and £2bn of debt whilst highlighting that its credit rating has retained its investment grade status.

Given the present short-term uncertainty, the company said it is not appropriate to give any further financial guidance for the 2021 financial year.

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