MIAMI – EasyJet (EC) is expected to emerge transformed from the pandemic crisis with a performance in line with its cost control program and thanks to a lower-than-expected cash burn. This is according to the results published for the third quarter (Q3) 2021, ending June 30.
By maintaining a Q3 disciplined approach to cash and capacity management, EC has been able to reduce its cash burn for an amount of US$75.6m (£55m) while fixed plus capital expenses stood at US$46.7m (£34m) per week, a better result than the planned US$54.9m (£40m) established for Q1 ending December 2020.
Contained Debt, Capacity Management
As a result, EC has been able to maintain its approximately US$2.75bn (£2bn) debt at an almost flat stand with an expected loss before tax of US$437m (£318m), in line with the airline expectations.
Capacity-wise, for Q4 ending September 2021, U2 is pointing toward a 60% of 2019 levels showing an increase of 17% over Q3 2021 results. This increase in capacity will be used to capitalize on the gradual easing of travel restrictions for vaccinated travelers in continental Europe and the UK. This will be achieved by increasing capacity on high-demand popular routes, catering for leisure travel.
EasyJet expects to exit from the Covid-19 crisis in a transformed form, based on a cost reduction program showing positive results, a performant and flexible network and schedule, while increasing nonticket-based revenue, and larger participation in the holiday travel market.
When looking at passenger figures and revenue, it appears that EC increased its offer to 4.5m seats and carried 3m passengers during Q3, a result representing 17% of Q3 2019 capacity. The Covid crisis has grounded the whole of the EC fleet during Q3 2020 with operations spanning only two weeks and a capacity of only 117000 seat
Revenue for Q3 2021, ending June 30, stands at US$292.6m (£212.9m), a much better result than the US$9.9m (£7.2m) registered at the same period of 2020. Passenger revenue increased to US$208.8m (£151.9m) – US$4.9m (£3.6m) in 2020 -, while non-ticket sales revenue increased to US$83.8m (£61m) against a US$4.9m (£3.6m) reached in 2020.
Total revenue percentage of non-ticket sale income per passenger continues to increase and the cabin baggage phase two program is online with the expectations and its participation in the total year-end revenue. More information here.
Capacity and Financial facts
Article source: Easyjet Financial Report for Q3 2021
Featured image: Easyjet Airbus A319 G-EZDX. Photo: Alberto Cucini/Airways