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EasyJet sees 'slightly' better-than-expected H1 results; eyes uptick in flying from late May
StockMarketWire.com
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EasyJet forecast 'slightly' better-than-expected results amid efforts to cut costs by limiting flying capacity, which was expected to increase from late May onwards.
'Based on current travel restrictions in the markets in which we operate, easyJet expects to fly up to 20% of 2019 capacity levels in Q3 with an expectation that capacity levels will start to increase from late May onwards,' the company said.
For the six months ended 31 March 2021, headline pre-tax loss was expected in the range of £690 million to £730 million, with revenue down 90% to £235 million.
Passenger revenue fell by 91% to £165 million and ancillary revenue decreased by 87% to £70 million.
Passenger numbers decreased by 89% to 4.1 million, in line with a decrease in capacity to 6.4 million seats, representing 14% of H1 2019 capacity levels.
Headline costs - excluding fuel - for the first half fell by 59% to about £845 million, driven by a decrease in capacity flown and 'the material savings achieved across many areas of the business from easyJet's major cost-out programme,' the company said.
Total cash burn during the second quarter was about £470 million.
Looking ahead, the company said it would continue to operate a reduced schedule throughout much of Q3 but is ready to ramp up its operations to match the level of demand we see in the market.
Most countries were planning to resume flying at scale in May, adding that it would ramp-up capacity to meet demand.
'We continue to closely monitor the situation across Europe and with vaccination programmes accelerating, most countries are planning to resume flying at scale in May. We have the operational flexibility to rapidly increase flying and add destinations to match demand, EasyJet said. Story provided by StockMarketWire.com
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