RE: Ryan Air v Easy Jet27 Feb 2024 10:57
European airlines prepare for record summer passenger numbers
Ryanair, easyJet and Wizz Air point to signs of strong demand despite economic gloom and high ticket prices.
Ryanair, easyJet and Wizz Air, the region’s three big low-cost airlines, all pointed to early signs of strong summer demand, as well as rising fares, in their most recent results.
Airlines are on course for a second consecutive bumper summer, after reporting healthy profits thanks to high fares last year.
EasyJet said it had been filling two planes a minute during its busiest booking periods since the start of this year, while Ryanair said this week that bookings were about 5 per cent higher than at the same time last year, and prices were up “by a low single-digit percentage’.
EasyJet said prices were “well ahead” of the same time last year, while Wizz Air also pointed to strong fares.
“We see positive booking momentum for summer 2024 with travel remaining a priority for consumers,” said easyJet boss Johan Lundgren.
“It’s absolutely supply against demand. People still want to travel and — notwithstanding the cost of living challenges — consumers are prioritising experiences,” said Andrew Lobbenberg, head of European transport research at Barclays.
Analysts at Bernstein said in a recent note that current European airline capacity was “well below its pre-pandemic growth path”, forecasting a 15 to 20 per cent shortfall in seats compared with demand.
“The real issue is that we think there is a lot more demand than what we are able to deliver,” said Váradi.
Sign In
Follow the stocks
