EasyJet reports encouraging demand but calls for temporary removal of APD

EasyJet will increase capacity in the final quarter of the 2020 financial year after reporting better than expected demand since its planes returned to the sky.

The low cost carrier said it will operate around 40% of its usual capacity in August and September, up from the previously announced 30%.

The results came as the airline called on the Government to offer more support for the battered aviation sector by temporarily removing Air Passenger Duty.

EasyJet Chief Executive Johan Lundgren said: "I am really encouraged that we have seen higher than expected levels of demand with load factor of 84% in July with destinations like Faro and Nice remaining popular with customers.

"Our bookings for the remainder of the summer are performing better than expected and as a result we have decided to expand our schedule over the fourth quarter to fly c.40% of capacity. 

"This increased flying will allow us to connect even more customers to family or friends and to take the breaks they have worked hard for."

But with aviation still reeling from the Covid, the airline called on the Government to stop up its support for the sector by temporarily removing Air Passenger Duty.

The move would "support the recovery of UK aviation", it said.

"The pandemic is having an unprecedented impact on the aviation sector," the carrier said in a statement. "It is one of the worst hit industries, and government action is needed across Europe to retain connectivity and a viable airline infrastructure. Without this we risk long term damage to the recovery.

"This would significantly quicken the reintroduction and growth of the number of flights and routes available in the UK, particularly outside London." 

Revenue for the April, May and June quarter hit £7 million, having restarted flying only two weeks before the end of the quarter.

It carried 117,000 passengers and reported a load factor of almost 89%.

The airline said it was seeing "encouraging performance across the network with a continued focus to undertake only profitable flying".

In July, EasyJet flew just over two million passengers with a load factor of 84%.

The grounding of its fleet in March saw costs in Q3 drop 79% from Q3 with its operational cash burn lower than the previously guided £30-£40 million per week.

Total cash burn for Q3 of £774 million was also lower than the previous guidance of £1 billion.

EasJet reiterated its plans to cut 30% of its workforce with and launched consultation process underway.

The airline said it "would not be appropriate" to provide any other financial guidance for the remainder of the 2020 financial year.