easyJet peaks in June with a load factor of 92%

EasyJet carried 22 million passengers in the third quarter. This was more than seven times more travelers than the same period last year, representing 87% of FY19 capacity. Capacity utilization continued to rise throughout the quarter, reaching a peak of 92% in June. The aviation industry’s unprecedented growth, combined with a tight labor market, has created extensive operational challenges. A consequence of this was a higher number of cancellations than usual. Despite this, easyJet completed 95% of its planned schedule in the third quarter.

Measures taken to reduce capacity and build operational resilience in the fourth quarter, as a result of restrictions imposed by London Gatwick and Amsterdam Schiphol, in addition to wider challenges within Europe, have resulted in July operations improving significantly so far. easyJet remains focused on ensuring smooth operations this summer and we will continue to adjust our schedule as necessary. Additional product revenue of £22.07 per passengers continue to surpass pre-pandemic levels, up 55% on the same period in 2019. easyJet Holidays generated £16m profit in Q3 from carrying 0.4m customers, surpassing previous peak profit of £ 10m4 in a whole year. The holiday company is still on track to transport 1.1 million passengers for the whole year.

Demand for easyJet’s leading network remains solid and bookings increased in the quarter. Fourth quarter is currently 71% fully booked, occupancy is slightly higher than in 2019, and ticketing revenue is 13% over FY19. easyJet predicts a positive development in returns in the first half of FY23. Fall bookings in October are currently in line with FY19 at 95% capacity from FY19 levels. Johan Lundgren, chief executive of easyJet, said: “Service to our customers remains our top priority this summer. In the last quarter we carried seven times more customers than in the same period last year and completed 95% of our timetable. We have taken steps to build the additional resilience needed this summer. At this point, operations are back to normal. Despite the loss this quarter from the short-term disruptions, the return to flying on a large scale has shown that the strategic initiatives launched under pandemic, is now delivering results. And more initiatives like this are on the way, including a step change in revenue from ancillary products, up 55% on the same period in 2019. We also generated a record profit of £16m in the quarter with easyJet Holidays This service is on track to serve 1.1 million customers for the full year easyJet expects capacity to be around 90% by Q4’19 across of our network of major European airports, with a target occupancy rate of over 90%.”

Approved flight purchase
After gaining shareholder approval earlier this month, easyJet has agreed to buy an additional 56 aircraft from the A320neo family for delivery between FY26 and FY29. Conversion of 18 planned deliveries of A320neo aircraft to 18 A321neo aircraft has also been promised. These aircraft will further support the modernization of the easyJet fleet, providing easyJet with both cost and sustainability benefits. It will also further increase the fuel efficiency of the fleet.

Outlook
easyJet currently expects capacity in the fourth quarter to be around 90% of Q4’19, with capacity utilization in excess of 90%. easyJet’s fourth quarter program is now 71% fully booked, 1 ppt more than this time in FY19. Fourth quarter ticket sales are currently 13% above FY19.
easyJet is currently 83% hedged on fuel in the fourth quarter of FY22 at approx. $705 per tonnes, 60% on fuel in the first quarter of FY23 to approx. $784 per tonnes and 33% on fuel in the second quarter of FY23. FY23 at approx. $879 per ton. The spot price on July 22, 2022 was approximately $1,090.

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