EasyJet’s winter hope as fears grow for summer season

EasyJet Holidays has reported encouraging demand for its winter 2021/22 season, while summer 2021 is also showing positive signs.

But in a trading update issued this morning, the operator said more customers are seeking clarification around quarantine before booking a summer trip.

Observers believe demand is set to slow dramatically following yesterday’s government announcements of a crackdown on travel and that holidaying overseas is now ‘illegal’.

"Holidays for Winter 2021/22 were launched in December and are experiencing very positive demand," the company said. "Bookings for Summer 2021 are currently significantly ahead of last year, although it is evident that many customers are looking for further certainty around quarantine rules prior to booking."

Such uncertainty is only likely to grow amid fears new hotel quarantine could continue into the summer. 

A survey of 5000 consumers – carried out prior to the travel crackdown – revealed 65% have, or plan to book travel in 2021.

EasyJet said it expects to fly only 10% of flights between now and the end of March.

The airline said it carried 2.9 million passengers in the final three months of 2020, down 87% on the same period in 2019, and operated just 18% of usual capacity.

Load factor tumbled 26 percentage points to 66%.

Total group revenue for the quarter ending 31 December 2020 decreased 88% to £165 million.

Passenger revenue fell 90% to £118 million and ancillary revenue decreased by 84% to £47 million.

Despite the grim outlook, the company said it was well-placed to take advantage of the pent-up demand once travel resumes, and was ready to step-in should legacy carries reduce capacity.

"We retain significant operational flexibility to enable us to capture pent-up demand and are able to ramp up flying quickly when demand returns," the company said.

"We see significant capacity leaving primary airports around Europe as legacy carriers are dramatically scaling back their short haul operations.  Competition at bases such as Paris, Milan, London Gatwick and Geneva is expected to be very much diminished, with competitors’ aircraft being retired

"EasyJet is uniquely positioned to strengthen its positions at these primary airports, where we have very high head-to-head overlap and generate our best returns due to scale.  Legacy carriers operated 71 million seats on easyJet routes in the 2019 financial year. "

It said it will base 71 aircraft at Gatwick in the summer.

EasyJet Chief Executive Johan Lundgren said:  "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."