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(Alliance News) - easyJet PLC on Thursday said it is waiting to take advantage of pent-up demand for travel abroad as Covid-19 restrictions are eased, after trading continued to be hurt by the pandemic.
On Monday, travellers were able to finally leave the UK and go on holiday to a select number of locations.
Half-year revenue to March 31 fell by 90% from a year before to GBP240 million from GBP2.38 billion, sending the low-cost airline to a GBP645 million loss, widened from GBP353 million. In addition, passenger revenue fell by 91% to GBP170 million and ancillary revenue decreased by 87% to GBP70 million.
Passenger numbers dropped by 89% and capacity was cut by 85% in response. Despite the disappointing results, easyJet said first-half results were in line with expectations.
Cash burn was better than expected for the quarter at GBP38 million per week and the airline has GBP2.9 billion in total liquidity to last it through the ongoing uncertainty.
The budget carrier said it expects to fly just 15% of 2019 capacity in the third quarter to June 30, with capacity starting to be increased from June onwards as travel restrictions are eased. Up to 90% of its fleet could be operated over the peak summer period to match demand, easyJet stated.
"We know there is pent-up demand - we saw this again when green list countries were released and added more than 105,000 seats - and so we look forward to being able to help many more people to travel this summer supported by our industry-leading flexible customer policies which means they can book with confidence," said Chief Executive Johan Lundgren.
An extensive cost-cutting programme is expected to save the company around GBP500 million for the year, helping offset costs tied to lower volumes of flying and increased ownership and financing costs.
Given the level of short-term uncertainty, easyJet said it would not be providing guidance for its 2021 financial year.
easyJet shares were down 2.8% on Thursday morning in London.
By Will Paige; willpaige@alliancenews.com
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