MIAMI – European low-cost carrier easyJet (U2) has today released a statement for its Q3 report. It also announced an increase in the number of flights. The airline looks to continue to cope with the growing demand for travel from holidaymakers.
Johan Lundgren, CEO of easyJet, said: “Returning to the skies again allows us to do what we do best and take our customers on much-needed holidays. I am extremely proud of all of our people whose care and commitment, along with the introduction of our industry-leading bio security measures, have resulted in customer satisfaction scores reaching a high of 80% since the re-start, an increase of 13 percentage points compared to the same period last year.”
“I am really encouraged that we have seen higher than expected levels of demand with a load factor of 84% in July with destinations like Faro and Nice remaining popular with customers.”
easyJet said that the booking for the remainder of the summer season is “performing better than expected” which has seen them expand their summer schedule into September, allowing them to fly at around 40% of pre-pandemic capacity.”
A Green Future for easyJet
There is an increase in demand for passengers as travel restrictions ease across Europe. Nevertheless, this is an opportunity for U2 to focus on its commitment towards a greener airline.
Mr. Lundgren said, “Despite the challenge we continue to face due to the pandemic, we remain no less committed to fulfilling our customers’ desire to fly sustainably through our carbon reduction initiatives, including offsetting on behalf of our customers.”
“As we look ahead, I am confident that easyJet will continue to serve our customers well, delivering our renowned friendly service and value across our unrivalled network.”
The recent surge in demand has seen U2 shares climb around 9% in early trading on Tuesday. However, the share value still remains around two-thirds lower than it stood in February.
Revenue and Cost/Cash Burn Take Major Hits
easyJet has said their cash flow as taken a major hit in Q3 with the airline returning to the skies. However, despite flights now taking place again, the total headline costs were £332.1m. This is a 79% decrease when compared to the same period last year.
However, there was some good news from the airline. It has started operations for more than a month ago. This has seen an encouraging performance across the network with a continued focus to understand only profitable flying. The carrier flying just over two million passengers with a load factor of 84% during July.
easyJet said its total group revenue for the Q2 ending June 30, 2020, was £7m. This was a direct reflection of the airline’s requirement to ground the entire fleet on March 30 during the pandemic.
This reduction in revenue has seen the carrier launch a major restructuring program. The company says it will “rightsize,” part of which sees U2 looking at a reduction of 30% of their workforce.
easyJet Looks at a Restructure
Last month, U2 opened consultations as it looks at plans to close bases at Stansted, Southend, and Newcastle. The announcement, however, has been met with opposition. BALPA general secretary Brian Stratton said the job cuts are “an excessive over-reaction.”
In addition, U2 recently took a multi-million-pound loan from the government. National officer for civil aviation Oliver Richardson said the money should instead “be put to use to defend UK jobs.”
With the aviation industry around the world struggling and with many companies making job cuts, it has left many asking the question as to what it is that airlines are using their government loans on. U2 has said that the job cuts are due to demand for air travel not reaching pre-pandemic levels until 2023.
With a disappointing but surprising Q3 report, U2 will now look towards the road of reocvery. The airline possibly wants to focus on the winter service schedule. Many believe that restrictions will be at their most relaxed around the world by then since the global pandemic began.