easyJet estimates £1bn loss but anticipates recovery in 2022

According to easyJet’s recent trading update it will generate a loss before tax for the year ended September 30 2021 of over £1bn.

During its fourth quarter easyJet flew 17.3m seats, operating 58 per cent of 2019 capacity with a stronger performance on intra-European and UK domestic routes, whilst demand for international routes from the UK continued to be impacted by UK Government travel restrictions.

Capacity is expected to be around 70 per cent of 2019 levels in the next financial year. While intra-European demand led the recovery over the summer, the recent UK Government announcement to remove and relax restrictions and testing has created positive booking momentum into next year.

In response, the airline has added 100,000 seats for the first quarter of the next financial year, with particularly strong demand for winter sun destinations.

Johan Lundgren, CEO of easyJet, said: “During the quarter easyJet significantly ramped up its flying which meant we were the second largest airline operating in Europe this summer while also halving our Q4 losses versus last year.

“We are encouraged to see positive booking momentum into FY22 which has led us to increase our capacity plans for Q1 to fly up to 70 per cent of 2019 levels.

“It is clear recovery is underway. Business travel is returning to easyJet with corporates and SMEs attracted by our value, network and approach to sustainability.”

Johan continued: “We have seen city breaks beginning to return alongside growing demand for leisure travel from customers looking for flights and holidays to popular winter sun destinations including Egypt and Turkey.

“October half term bookings have been strong, particularly to the Canary Islands where we have increased our capacity to c.140 per cent of FY19 levels.

“Having successfully completed our rights issue and strengthened the balance sheet, we will take advantage of strategic investment and growth opportunities to deliver strong shareholder value.”