Airline easyJet has said its losses are decreasing and
forward bookings are gaining momentum following the UK government’s lifting of
the majority of travel restrictions for vaccinated passengers, with the carrier
expecting a loss before tax of between £1.135 billion and £1.175 billion for
the year to 30 September.
In a trading update, easyJet said its Q4 headline losses
decreased by more than half year on year, while its net debt has reduced to
around £900 million from £2 billion in Q3. Total group revenue for Q4 is expected
to be around £1 billion against costs of £1.14 billion.
The airline said capacity in Q4 was at 58 per cent of FY19,
with intra-European and UK domestic routes performing better than international
routes from the UK, which continued to be impacted by government travel
restrictions. Following a reduction in the travel red list and testing
requirements for fully vaccinated passengers, easyJet said it is expecting
strong forward bookings, with Q1 capacity predicted to be up to 70 per cent of 2019
levels. The airline has added 100,000 seats for Q1.
EasyJet CEO Johan Lundgren pinned much of the airline’s
successes down to a resurgence of business travel. “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. 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.”
Last month, easyJet confirmed it had rejected an “unsolicited”
takeover bid which it said “fundamentally undervalued the company”. Reports
suggested the offer came from low-cost rival Wizz Air.