EasyJet makes £1bn before tax loss in 2021

easyJet has declared a before tax loss of £1.1bn in the 2021 financial year.

Passenger revenue decreased by 57 per cent to £1bn (2020: £2,303 million) as we flew an optimised schedule with a focus on domestic and continental Europe where there was the least amount of restrictions over travel.

However, according to the airline, demand is accelerating with key periods such as October half term, ski and Christmas seeing strong performance. It also continues to add capacity and expects to fly c. 70 per cent of 2019 capacity in Q2 2022 and expect that Q4 summer capacity will be at near 2019 levels.

In addition, easyJet has confirmed an agreement with Airbus a firm commitment in respect of an additional nineteen (19) aircraft with deliveries between financial year 2025 and financial year 2028. This results in 118 firm Airbus A320 NEO family aircraft outstanding orders at the date of this announcement.

Commenting on the results, Johan Lundgren, easyJet chief executive said: “easyJet is moving through the pandemic with renewed strength having transformed the business by optimising our network and flexibility, delivering significant cost savings while also step-changing ancillary revenue.

“These initiatives alongside our strong, investment grade, balance sheet provide easyJet with renewed strength to manage any further Covid related travel disruptions, as well as a platform to fast track our growth and deliver strong shareholder returns. With this platform, we have the ambition to beat our targets set earlier this year.

“With ambitious plans for profitable growth we are expanding our leadership positions at key bases such as Gatwick and Milan with additional slots and aircraft this year and have 118 aircraft on order with a further 59 purchase options and rights confirmed to further build on this in the years to come.”