easyJet predicts post-lockdown boom in demand despite 88% revenue drop

A UK airline has reported that its revenues have fallen by nearly 90 per cent as it continues to struggle with lockdown restrictions.

easyJet said today (28 January) that its revenues for the end of 2020 decreased by 88.4 per cent, dropping from £1,425m to £165m.

It predicted that in this quarter, it will only fly 10 per cent of pre-pandemic capacity.

The company added that it is anticipating a release of “pent up demand for travel”, predicting that 65 per cent of European customers will fly during 2021.

Ahead of this anticipated demand, easyJet is investing in growing its presence at Gatwick Airport, basing a record 71 aircraft at the site this summer.

Johan Lundgren, easyJet’s chief executive, commented: “Our performance in the period was in line with management expectations, despite more stringent restrictions coming into place.

“We have taken the right actions to emerge leaner with a reduced cost base and the retrenchment of legacy carriers at key airports will provide additional opportunities for easyJet.

“Our core strengths remain unaffected by the pandemic - we have loyal customers who know and trust our brand, an unmatched network, offer value for money and a leading position on sustainability with high customer satisfaction.

“The key to unlocking travel is going to be the vaccination programmes combined with governments progressively removing restrictions when it is safe to.

“And in the meantime, our flexible industry-leading policies mean that customers can make plans and book with confidence.”