Price Fighter EasyJet Recovers From Crisis, But Does Make A Loss

British low-cost airline EasyJet, one of the largest users of Schiphol Airport, has noticed that the recovery from the crisis has started. The company expects to fly at almost 70 percent of capacity in the period up to and including December, compared to the period before corona.

 

This was 58 percent in the past quarter. The company closed the past financial year with a significant loss.

According to EasyJet, the demand for holidays to popular winter sun destinations such as Egypt, Turkey, and the Canary Islands shows that many people are excited to travel again. EasyJet also notices that the number of bookings is increasing again in terms of business travel. For that reason, the company increased its capacity expectations for the first quarter of the new fiscal year by 100,000 seats. EasyJet is also counting on further recovery for the months thereafter.

These prospects for the current financial year, in which a cautious profit is also expected, signify a reversal compared to the previous financial year. The uncertainties surrounding the coronavirus and travel bans are expected to saddle easyJet with losses of between £1.135 billion and £1.175 billion in the twelve months to October.

In an effort to recover from the pandemic, EasyJet raised £1.2bn from shareholders in September. However, the price fighter also announced that it had rejected an “opportunistic” takeover offer, presumably from Wizz Air.

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