Budget airline easyJet on Tuesday said it expected to fly 60% of its pre-pandemic capacity in the fourth quarter as Covid restrictions eased across Europe as it reported a reduction in its cash burn.
The group said it was confident on demand levels for the rest of the summer and autumn and was scheduling 60% of flights on intra-European routes, given the region had opened up faster than the UK.
“We have used our existing strengths like our network with renewed purpose – pivoting capacity to Europe where we saw the strongest demand and the very way we have approached the challenges that we faced means we have adapted and built back stronger for the future,” said chief executive Johan Lundgren.
The company reported a £318m third quarter loss for the three months to June 30 compared with a loss of £346.8m last year. EasyJet said cash burn came in at £55m a week while revenue rose to £212.9m from £7.2m in 2020.
Fixed costs plus capital expenditure averaged £34m per week, outperforming the £40m per week guidance given at first quarter results. Net debt was broadly flat at £2bn.
Current bookings were behind pre-pandemic levels as as customers were booking later as they tried to avoid any last-minute changes to travel rules.
“At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any other financial guidance for the remainder of the 2021 financial year. Customers are booking closer to departure and visibility remains limited,” the airline said.