Tag Archives: easyJet (UK)

easyJet reports a loss of £318.3 million ($436 million) in the third quarter

easyJet (UK) Airbus A321-251NX WL G-UZMC (msn 8386) LGW (Richard Vandervord). Image: 954472.

easyJet reported its pre-tax third quarter loss dropped 8.2% to £318.3 million ($436 million, 370 million euros).

The airline issued this statement:

Summary

easyJet has maintained its disciplined approach to capacity and cash management during Q3 and, as a result, total cash burn during the quarter reduced to £55 million.  Fixed costs plus capex have averaged £34 million per week, outperforming the £40 million per week guidance given at Q1.  This disciplined cost and cash management has enabled easyJet to maintain net debt broadly flat at c.£2.0 billion and a headline loss before tax of £318 million, which is in line with expectations. 

easyJet’s capacity in Q4 will be up to 60% of 2019 levels, up from 17% in Q3 2021.  In order to capitalise on the opening-up of travel in continental Europe and the easing of restrictions for the fully vaccinated in the UK, easyJet continues to pivot capacity towards popular routes where we see rising customer demand. 

easyJet will emerge from the pandemic transformed, driven by a cost program that is delivering, industry-leading network / schedule flexibility, a step change in ancillary revenue and with easyJet holidays taking market share.

Commenting on Q3 trading, Johan Lundgren, CEO of easyJet, said:

During this quarter we have successfully managed through the continued challenges of the pandemic, using our operational responsiveness to capture demand while focusing on cost control and minimising cash burn.  

“We have used our existing strengths like our network with renewed purpose – pivoting capacity to Europe where we saw the strongest demand and the very way we have approached the challenges that we faced means we have adapted and built back stronger for the future. 

“As a result, we will emerge from the pandemic with longer-term wins along-side baked in sustainable cost reductions, responding effectively and in ways our competitors don’t or can’t. 

“This is all underlined by our proven business model, low fares, unrivalled network and brand trust which will be crucial going forward. So, while we know the road to recovery from the pandemic isn’t going to be a straight line we are ready to compete using these new-found strengths with everything we have learned leaving a long-term, positive imprint on the airline, transformed ready for the post-pandemic era.” 

Revenue

Passenger numbers1 for the quarter ending 30 June 2021 increased to 3.0 million, in line with an increase in capacity2 to 4.5 million seats, representing 17% of Q3 2019 capacity levels. As a result of the Covid pandemic, easyJet’s fleet had been fully grounded for all but two weeks of the third quarter 2020, flying just 117,000 seats.

This led to total group revenue for the quarter ending 30 June 2021 increasing to £212.9 million (2020: £7.2 million), with passenger revenue increasing to £151.9 million (2020: £3.6 million) and ancillary revenue increasing to £61.0 million (2020: £3.6 million).  Ancillary revenue per passenger continues to increase as a percentage of total revenue. Phase two of the cabin bags product is on track for delivery later this year. 

Cost / Cash Burn

Group headline costs for the quarter ending 30 June 2021 were £531.2 million (2020: £354.0 million 3), driven by a low level of capacity flown and by the material savings achieved across many areas of the business from easyJet’s major cost-out program. 

easyJet maintained a disciplined approach to capacity and cash management and, as a result, total cash burn during the quarter was reduced to £55 million.  Cash burn on a fixed costs plus capex basis during the quarter was £34 million per week on average, outperforming the guidance for £40 million per week given at the Q1 trading update.  easyJet paid a further £122 million of customer refunds during the quarter and the total value of vouchers in issuance is currently c.£230 million.  easyJet has paid a cumulative total of £1.2 billion customer refunds during the pandemic. 

As previously announced, easyJet’s structural cost-out programme is on target to deliver c.£500 million of savings in FY21 of which almost half will be sustainable on an ongoing basis.  The cost-out programme will help to mitigate expected cost headwinds in ownership costs and navigation charges and improve margins.  Cost actions for FY22 are underway.  We continue to utilise furlough schemes across Europe. 

Headline loss before tax for the quarter decreased by 8.2% to £318.3 million (2020: £346.8 million 3). 

 

Capacity

During the third quarter easyJet flew 17% of Q3 2019 capacity, slightly ahead of our expectations.  Our capacity forecasting has been accurate and disciplined throughout the pandemic, which has helped deliver strong cost control. 

 

April

2021

May

2021

June

2021

Q3

2021

Passengers (000s) 1

524

870

1,591

2,985

Seats flown (000s) 2

1,003

1,278

2,214

4,495

% of 2019 capacity flown

11%

13%

23%

17%

Load factor 4

52%

68%

72%

66%

 

easyJet maintains significant operational flexibility and has kept the fleet in a flight-ready condition.  95% of easyJet crew are trained to operate flights from mid-July.  Safety is our number one priority. 

 

Network

easyJet’s market-leading European short-haul network is focused on number one and two positions at primary airports and enables us to be efficient with our network choices, with an emphasis on maximizing returns.  The scale and flexibility of our network also provide us with the opportunity to realign capacity to take advantage of these changes in the competitive landscape, including:

 

·    Switching capacity from UK-touching to EU-touching for this summer, taking advantage of the considerable flexibility afforded by our destination base strategy to serve some of the stronger traffic flows we are seeing within Europe.  On 22 June we launched 21 new routes using capacity based in Palma de Mallorca (PMI), Faro and Malaga, representing 286,000 seats.  In particular this has given us the opportunity to increase our presence in Scandinavia to serve new network points, including Stockholm Arlanda and Copenhagen.  We have also switched capacity which was planned for UK/Palma de Mallorca to operate instead on Berlin/Palma de Mallorca. 

 

·    Pivoting capacity towards popular routes showing rising customer demand in order to capitalise on the opening-up of travel in continental Europe, including adding further seats to our intra-European network, such as:

o  Increased flying from Berlin to Faro and Lisbon

o  Increased flying from Amsterdam to Tenerife, Palma de Mallorca and Malaga

 

·    Increasing flying from Paris-CDG to Corsica and from Milan-Malpensa and Milan-Linate to Olbia, Catania and Palermo in order to capitalize on strong domestic demand within our continental European markets

 

·    Topping up and launching new routes related to changes in UK Government travel restrictions such as the addition of destinations like Malta and Madeira to the Green list on 25 June when we put c.60,000 additional seats on sale and launched two new routes, Bristol/Malta and Luton/Malta. 

 

·    Increasing capacity to Amber list countries when the UK government announced on 8 July that fully vaccinated passengers would be able to fly back from these countries without quarantine. We topped up capacity on 74 UK/Amber routes, notably to Spain, Greece, Portugal, and Cyprus. 

 

·    Launching eight new routes from EU and Swiss bases to cover flying for August that was previously operating from the UK, in order to maintain our strong slot portfolio in Greece.  These new routes are operating from Geneva and Basel to Corfu and Cos, to Crete from both Paris-CDG and Amsterdam, Basel to Santorini and Naples to Rhodes. 

 

·    Further building out our UK domestic leisure portfolio, including back-filling some of the capacity left by the failure of Stobart Air on 12 June.  On 17 June we launched 12 new UK domestic routes, representing 267,000 seats and including three new network points in Belfast City, East Midlands and Leeds Bradford.  Furthermore, we topped up capacity on former Aer Lingus routes from Belfast International to Glasgow, Edinburgh, Birmingham and Manchester, representing 60,000 seats.  Routes to and from Belfast are currently amongst some of the best performing in our network.  In response to the continuing UK government travel restrictions we have focused capacity on UK domestic leisure opportunities, notably to Jersey, Bournemouth and Newquay. 

 

As a result of the current divergence in government travel policies, easyJet’s bookings for this summer are heavily skewed towards continental Europe.  Whilst our business is normally split 50:50 between the UK and Europe, at present two thirds of bookings are coming from Europe. 

 

easyJet will act quickly to selectively acquire attractive slots which may become available in primary, slot-constrained airports.  We have recently acquired slots in Milan-Linate, Amsterdam-Schiphol and Paris-Orly. 

 

Forward Bookings

Customers are currently booking much closer to departure due to market conditions with 49% of our Q4 schedule booked, which compares to 65% in 2019. Booking rates on UK-touching flights have been lower than intra-EU flying due to the uncertainty around government restrictions. easyJet expect this to improve quickly as restrictions are lifted over the coming period.

UK-touching capacity is 44% sold (compared to 69% at this point in 2019) and intra EU capacity is 53% sold (compared to 64% at this point in 2019).

We remain confident about demand for travel this summer and into autumn, due to the bookings surges experienced following selective easing of travel restrictions, such as the 400% increase in week-on-week flight bookings seen following the waiving of quarantine for fully vaccinated passengers returning from Amber list destinations.  No-shows rates have dropped to average just 4% across the network as consumer confidence to fly is increasing.  CSAT and On-Time Performance rates continue above target.  We are also encouraged by high consumer savings rates and high balances of employees’ annual leave.  We expect a relatively benign pricing environment for the coming months. 

Photo: IG/speedbirduk

Fleet

easyJet’s fleet size has been reduced by c.10% in response to the Covid-19 pandemic.  Our fleet plans allow flexibility to tailor the size of the fleet according to market conditions. In 2022 we plan to grow to 317 aircraft enabling easyJet to meet the high levels of pent-up demand expected in summer 2022 and also to take advantage of the post-pandemic opportunities to grow and strengthen our network.

Deliveries of new A320neo family aircraft will resume from this autumn.  easyJet will take delivery of eight new aircraft in FY22, seven in FY23 and 18 in FY24.  These Neo family aircraft burn 15% less fuel than the aircraft they replace, generating 15% less carbon emissions.  They also generate 50% less noise footprint on take-off. In total we have 101 Neo aircraft on order, 20 purchase options and 58 unexercised purchase rights 

We retain significant flexibility with regards to the size of our leased fleet.  There are 38 leased aircraft due to be re-delivered to lessors over the coming 15 months.  We have already committed to extend some of these aircraft on very favourable operating lease conditions that are available in the current market.  We can also retain use of further aircraft on advantageous terms as we see demand returning. 

 

Balance Sheet & Liquidity

easyJet has taken swift and decisive action successfully raising over £5.5 billion in liquidity since the beginning of the pandemic, from a diversified range of funding sources.

 

As at 30 June 2021 easyJet has unrestricted access to c.£2.9 billion of liquidity, comprising cash and cash equivalents plus the undrawn portion of the UKEF facility.  The remaining £300 million of easyJet’s borrowings from the CCFF is due in November 2021.  easyJet has no other debt maturities outstanding until the 2023 financial year. 

 

As previously indicated, easyJet will continue to review its liquidity position on a regular basis and, as part of the capital structure review, assess all further funding opportunities.

 

Sustainability

easyJet continues to lead the way in Europe as the world’s first major airline to offset all of the carbon emissions from its flights on behalf of its customers and we continue to work tirelessly to minimize carbon emissions across our operations alongside supporting the development of new technologies to reinvent aviation as quickly as possible. Offsetting is an interim solution, while zero emissions technology is developed. We are excited to see the growing momentum behind disruptive technologies such as all electric, hybrid and hydrogen.  We continue to advocate smarter aviation regulation which rewards carbon efficiency and we believe that radical action to address the impact of climate change is needed.  

 

We are also proud that easyJet holidays is now the first major tour operator to offset the carbon emissions directly associated with its holidays – the fuel from flights and transfers plus the energy from hotel stays. 

 

In July we will be launching our ‘Travel Better’ marketing campaign across social media, in all of our customer service messaging and on board our aircraft, in order to improve customer understanding of the important steps we are taking on sustainability. 

 

Outlook

Based on current travel restrictions in the markets in which we operate:

·    In Q4 easyJet expects to fly up to 60% of Q4 2019 capacity

o  Capacity plans are flexible, depending upon the status of travel restrictions

o  Intra-EU flying represent 60% of currently scheduled capacity

At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any other financial guidance for the remainder of the 2021 financial year.  Customers are booking closer to departure and visibility remains limited. 

 

    

KEY Q3 FINANCIALS

 

Three months ended

30 June 2021

30 June 2020

Change

Fav./(adv.)

Number of flights

24,682

709

3,381%

Peak operating aircraft

158

10

1,480%

Passengers (000s) 1

2,985

117

2,445%

Seats flown (000s)

4,495

132

3,309%

Load factor (%) 4

66.4%

88.9%

(22.5) ppts

Total group revenue (£ million)

212.9

7.2

2,866%

Total group headline cost (£ million) 3

(531.2)

(354.0)

(50.1%)

Headline loss before tax (£ million) 3

(318.3)

(346.8)

8.2%

Notes:

1.  Represents the number of earned seats flown. Earned seats include seats which are flown whether or not the passenger turns up, as easyJet is a no-refund airline and once a flight has departed, a no-show customer is generally not entitled to change flights or seek a refund. Earned seats also include seats provided for promotional purposes and to staff for business travel.

2.  Capacity based on actual number of seats flown.

3.  Headline loss before tax for Q3 2020 has been restated by a further £22 million. The increase in headline costs aligns to the categorization adopted during FY 2021, whereby foreign exchange gains or losses arising from the re-translation of monetary assets and liabilities, as well as fair value movements after hedges have been marked as discontinued, have been reclassified from non-headline items to headline items.  There is nil impact of this reclassification to the total loss before tax for Q3 2020, H2 2020 or FY 2020.  At H1 2021 no reclassification was made to the H1 2020 result due to the immaterial value.

4.  Represents the number of passengers as a proportion of the number of seats available for passengers. No weighting of the load factor is carried out to recognise the effect of varying flight (or ‘sector’) lengths.  

In other news, easyJet announced it will operate 60% of its pre-pandemic flights in the fourth quarter.

Top Copyright Photo: easyJet (UK) Airbus A321-251NX WL G-UZMC (msn 8386) LGW (Richard Vandervord). Image: 954472.

easyJet aircraft slide show:

easyJet opens a new seasonal base in Malaga

easyJet has made this announcement:

  • With this new base, easyJet brings the number of its bases to three in Spain (Barcelona and Palma de Mallorca) and reaffirms its commitment to the region.
  • With three based aircraft, the airline will create around 100 new direct jobs, including pilots and crew, all of them employed under local contracts in line with the Spanish legislation.

Ahead of the summer season, easyJet on June 8 inaugurated its new seasonal base at Malaga-Costa del Sol Airport, which will allow the carrier to better respond to an increase in demand due to different European countries progressively re-opening for tourism. The new base, operational since June 1, adds to those that easyJet already has in Barcelona and Palma de Mallorca and consolidates the company’s presence in Spain, an ever-growing market for the airline.

easyJet will now base a total of 12 aircraft in Spain where it counts on more than 400 employees, all employed under local contracts. easyJet is the 2nd airline in Malaga and, after announcing a new route with Birmingham  (from June 29 to October 30), it now offers up to 14 routes to some of the most popular destinations in Europe, such as London, Berlin, Geneva, Paris or Amsterdam, among others.

easyJet expects a first half loss before tax in the range of £690 to £730 million

Promoting easyJet holidays

easyJet (UK) released this financial statement:

Summary

easyJet has operated a disciplined flying program over the winter months whilst continuing to deliver a major restructuring and cost reduction program.  As a result, easyJet expects a first half headline loss before tax in the range of £690 to £730 million, which is slightly better than expectations.  The effects of the cost-out program will support improved margins and reduce seasonality for the future.  Our capacity forecasting has been accurate and disciplined throughout the pandemic, which has allowed for strong cost control.  Our focus on cash generative flying over the winter season has minimized cash burn, with cash burn in the second quarter better than guidance.

As at 31 March 2021 easyJet has unrestricted access to c.£2.9 billion of liquidity having raised over £5.5 billion since the beginning of the pandemic1, and is well positioned to capitalize on the recovery of travel once restrictions are eased across the network. 

easyJet has maintained a high level of operational flexibility to respond to rapidly-changing travel restrictions.  We will continue to operate a reduced schedule throughout much of Q3 but are ready to ramp up our operations to match the level of demand we see in the market.

 

Johan Lundgren, CEO of easyJet, said:

 

 easyJet has maintained a disciplined approach to flying during the first half of our financial year, resulting in a first half loss and cash burn better than expectations.  We continue to have access to significant levels of liquidity alongside easyJet’s major cost-out program which continues to deliver ongoing cost and efficiency benefits.  All of this positions us well to lead the recovery.

 

“We welcome the confirmation by the UK Government that international travel is on track to reopen as planned in mid-May.  easyJet was founded to make travel accessible for all and so we continue to engage with Government to ensure that the cost of the required testing is driven down so that it doesn’t risk turning back the clock and make travel too costly for some. 

 

“We continue to closely monitor the situation across Europe and with vaccination programs 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 is ready to resume flying, prepared for the ramp up and looking forward to being able to reunite people with their families or take them on leisure and business flights once again.  As a result, we remain well-positioned for the recovery this summer and beyond.”

 

 

Revenue

Passenger numbers2 for the six months ending 31 March 2021 decreased by 89% to 4.1 million, in line with a decrease in capacity3 to 6.4 million seats, representing 14% of H1 2019 capacity levels. This led to total group revenue for the six months ending 31 March 2021 decreasing by c.90% to c.£235 million, with passenger revenue decreasing by c.91% to c.£165 million and ancillary revenue decreasing by c.87% to c.£70 million.

 

 

Cost & Cash Burn

Group headline costs excluding fuel for the first half decreased by c.59% to c.£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 program.  easyJet maintained a disciplined approach to capacity and cash management and as a result, total cash burn during the second quarter was c.£470 million, which is better than previous guidance.

 

The structural cost-out program we announced last year, easyJet’s largest ever, is on track to achieve our targeted cost savings and will position easyJet well to lead the recovery in aviation.  

 

 

Capacity

During the first half easyJet flew 14% of H1 2019 capacity, in line with our expectations.  Our capacity forecasting has been accurate and disciplined throughout the pandemic, which has helped deliver strong cost control. 

 

January

2021

February 2021

March 2021

Q2

2021

Passengers (thousand) 2

456

367

405

1,228

Seats flown (thousand)

787

612

663

2,062

% of 2019 capacity flown

12%

9%

8%

9%

Load factor 4

58%

60%

61%

60%

 

 

Network

easyJet remains disciplined in focussing on profitable flying.  Our operations, financial and commercial teams are running dynamic schedule updates, on a regular basis, in order to capitalize on all available demand.  We retain significant operational flexibility to enable us to capture pent-up demand and are able to ramp up flying quickly when demand returns. 

 

 

Flexibility

easyJet’s market-leading flexible customer policies are driving trust and confidence to book.  We are offering more flexibility than ever before.  Our Protection Promise for both flights and holidays means that customers can book now with the confidence that if their plans change, so can their booking.

 

 

Ancillaries

Ancillary revenues represent a significant opportunity for easyJet to increase revenue per seat and margins in the coming years. 

 

In January easyJet launched a new fare class called Standard Plus, which is performing well.  Our new cabin bag policy came into effect in February and early indications show that this is also on track relative to our revenue expectations, as well as having a positive effect on our On Time Performance metrics.  The ability to bring a large overhead cabin bag on board is now bundled with Up front and Extra legroom seating.  The seating and bag packages are actively yield managed and dynamically priced from £7.99. 

 

 

Balance Sheet & Liquidity

easyJet has taken swift and decisive action successfully raising over £5.5 billion in liquidity since the beginning of the pandemic1, from a diversified range of funding sources. 

 

In March easyJet’s subsidiary easyJet FinCo B.V. issued a €1.2 billion bond under our Euro Medium Term Note (EMTN) program.  The bond matures in March 2028 and has a coupon of 1.875%.  There was good market appetite for the bond, which was heavily oversubscribed.  easyJet continues to maintain access to a diverse range of funding sources and continues to review its debt maturity profile. 

 

As at 31 March 2021 easyJet has unrestricted access to c.£2.9 billion of liquidity, comprising cash and cash equivalents, money market funds, money market deposits plus the undrawn portion of the UKEF facility.  The first £300 million tranche of easyJet’s borrowings from the CCFF was repaid in March 2021 and the remaining £300 million is due in November 2021.  easyJet has no other debt maturities outstanding until FY 2023. 

 

We retain ownership of 56% of the total fleet, with 41% unencumbered.  Sale and leaseback transactions on 23 aircraft were concluded during H2 2020, raising £608 million gross proceeds and adding c.£50 million to pro forma per annum headline costs.  During H1 2021 transactions were concluded on 35 aircraft, raising £842 million gross proceeds and adding a further c.£90 million to pro forma per annum headline costs. 

Photo: IG/speedbirduk

As previously indicated, easyJet will continue to review its liquidity position on a regular basis and will continue to assess further funding opportunities.

 

 

Fuel & FX hedging

Due to the sustained lower capacity expected for several months ahead, easyJet has continued to see hedge ratios moving over 100% from both a jet fuel and FX perspective.  To mitigate the effects of this, easyJet has taken action to close out over-hedge positions, to mitigate its exposure to volatility in the fair value of discontinued hedges.  easyJet continues to hedge contractual exposures (such as leases and capex) and has decreased the amount of operational hedging that is taken out for future periods until there is greater clarity around exposures.

 

 

Non-Headline Items

Non-headline items for the six months ending 31 March 2021 are expected to reflect a net c.£55 million credit.  This is comprised principally of gains related to sale and leaseback transactions, with a net charge related to fuel hedge discontinuation being largely offset by a release of restructuring provisions.  The release of restructuring provisions is based on current expectations of our latest discussions with unions, on which we will provide a further update at the half year results.  This will be subject to review by our auditors. 

 

 

Outlook

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.  We maintain significant flexibility to ramp capacity up or down quickly depending upon the unwinding of travel restrictions and expected demand across our European network. 

 

The group headline loss before tax for the six months ending 31 March 2021 is expected to be in the range of £690 to £730 million. 

 

The group reported loss before tax is expected to reflect the positive impact of the non-headline items discussed above. 

 

easyJet will release half year results for the six months ending 31 March 2021 on 20 May 2021. 

 

At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any further financial guidance for the 2021 financial year.  Customers are booking closer to departure and visibility remains limited. 

 

 

KEY H1 FINANCIALS

 

Six months ended

31 March 2021

31 March 2020

Change

Fav./(adv.)

Number of flights

35,100

244,235

(85%)

Peak operating aircraft

161

318

(49%)

Passengers (thousand) 2

4,086

38,566

(89%)

Seats flown (thousand)

6,412

42,702

(85%)

Load factor 4

63.7%

90.3%

(26.6ppts)

Total group revenue (£ million)

c.235

2,382

(90%)

Passenger revenue (£ million)

c.165

1,833

(91%)

Ancillary revenue (£ million)

c.70

549

(87%)

Total group headline cost (£ million)

(c.940)

(2,575)

64%

Group headline profit/(loss) before tax (£ million)

(690-730)

(193)

(497-537)

Top Copyright Photo: easyJet holidays (easyJet UK) Airbus A320-214 WL G-EZOA (msn 6412) LGW (Robbie Shaw). Image: 948409.

easyJet (UK) aircraft slide show:

 

easyJet launches new routes from Birmingham this summer to five European beach destinations

easyJet (UK) Airbus A321-251NX WL G-UZMD (msn 8421) PMI (Javier Rodriguez). Image: 951131.

easyJet and easyJet holidays have announced the launch of new routes and holidays from Birmingham Airport for this summer.

Starting from June 29, 2021, flights and holidays will take off from Birmingham Airport to the popular beach destinations of Majorca, Málaga and Alicante in Spain, Faro in Portugal, and Corfu in Greece.   

Birmingham to Málaga flights will operate twice weekly on Tuesdays and Saturdays from June 29 with fares available from £22.99*

Birmingham to Faro will operate three times per week on Tuesdays, Fridays and Sundays from June 29 with fares from £22.99*

Birmingham to Alicante will operate three times per week on Wednesdays, Fridays and Sundays from June 30 with fares from  £23.99*

Birmingham to Majorca will operate three times per week on Tuesdays, Thursdays and Saturdays from July 3 with fares from £22.99*

Birmingham to Corfu will operate twice weekly on Thursdays and Sundays from July 4 with fares  from £22.99*

 

Ali Gayward, easyJet’s UK Country Manager commented: 

“We are pleased to announce more connectivity to Birmingham today in flying to popular beach destinations and getting customers away on their much-needed summer holiday across Europe this year.

“We believe that a framework can be put in place for the safe reopening of travel and a strong summer, and we are currently focused on working with the UK Government Travel Task Force in the coming days and weeks. We are hopeful that progress will continue to be made with the vaccination programmes in Europe, with several countries in Europe having indicated they will be welcoming British tourists this summer. We remain of the view that international travel can restart and that, with the right framework in place, restrictions can be safely and progressively reduced and in some cases removed by mid-summer for key destinations. We’ve kept our fleet in a flight-ready mode so we are ready and able to ramp up our services quickly and increase our capacity where we see increased demand for the summer.”

easyJet now operates up to ten routes from Birmingham, offering services to a range of city and beach destinations across the UK and Europe.

Top Copyright Photo: easyJet (UK) Airbus A321-251NX WL G-UZMD (msn 8421) PMI (Javier Rodriguez). Image: 951131.

easyJet aircraft slide show:

easyJet to serve the Toulon Hyères Airport

easyJet is coming to the Toulon Hyères Airport with two new routes:

London (Gatwick) starting on June 23, 2021

Paris (CDG) starting on June 28, 2021

Toulon–Hyères Airport (TLN) is an airport serving Toulon, a community in the Var Department of the Provence-Alpes-Côte d’Azur region in France.

easyJet launches Virtual Pilot School Visits program on International Women’s Day

easyJet (UK) has made this announcement:

  • easyJet pilots will virtually join classrooms and assemblies up and down the country to show young people what their job is really like – and that it’s can be a job for everyone
  • A recent survey by the airline found that British children’s ideas about future careers have not moved on in a generation and are still based on a gender divide
  • Over half of British children (51%) still believed career choices were restricted by traditional male and female jobs
  • 79% of parents agreed that gender stereotypes around employment need to be dispelled in schools at an early age
  • The visits are part of easyJet’s Amy Johnson Initiative to encourage more girls to become an airline pilot in the future, with many of the airline’s female pilots taking part to inspire a more diverse generation of high-flyers.

easyJet has today launched a virtual pilot school visits program as part of its Amy Johnson Initiative to encourage more girls to become an airline pilot.

Teachers, schools and parents can request a virtual visit from an easyJet pilot, who will join classrooms and assemblies via video link, providing young people across the UK with the opportunity to find out what the job of a pilot is really like and importantly, with many of the airline’s female pilots fronting the program, to show them it’s a job for everyone.

The airline has launched its virtual school visits on International Women’s Day, with this year’s theme #ChoosetoChallenge highlighting the importance of calling out gender bias. Recent research conducted by easyJet showed that around half of British children (51%) still believed their career choices were biased towards traditional male and female jobs, suggesting that gender stereotypes are still having an impact on children’s career aspirations and that the work to challenge this starts in schools.

The study of 2,000 British parents and children aged six to 16 was commissioned by the airline before the pandemic, as part of its Amy Johnson Initiative to encourage young people to think beyond stereotypes by championing female pilots of the future – a career which is overwhelmingly male with around 95% of pilots being male worldwide.

Almost half (49%) of British male parents surveyed considered a pilot career as a child, in comparison to just 17% of female parents. Whilst results showed an uptake of interest in piloting, today’s generation display a similar disparity as over five in ten (54%) boys contemplate a pilot’s role in contrast to only 27% of girls.

Gender stereotyping was a source of regret for many of the parents, as almost three-fifths (58%) admitted to choosing their own career in order to conform to a role expected of their gender. Whilst there has been growth in breaking down gender stereotyping in employment, two-fifths (40%) of British parents expressed concern that their child’s future career aspirations could be limited by gender stereotypes.

Of the parents that took part, 79% agree that schools should help dispel gender stereotypes around employment at an early age. The airline has also seen that positive childhood role models; like TV and film stars, family members, and meetings with real pilots, were vital to inspiring young people to consider the career, and critical to challenging these stereotypes.

Since 2017 easyJet pilots have visited over 400 schools and colleges across Europe and with the launch of its virtual pilot visits, the airline will ensure the important work to highlight visible female role models in schools can continue, despite the restrictions of the pandemic. The first virtual visit is taking place today at Bourn Primary School in Cambridge who will receive a visit from Captain Iris de Kan to learn more about her job, with more virtual visits planned for the coming weeks.

The airline launched its Amy Johnson Initiative in 2015, named after the pioneering British aviator, to help redress the industry’s gender imbalance in the pilot community. Alongside pilot visits to schools, youth and aeronautical organizations, the airline has also worked with pilot training partners to offer scholarships and run media awareness campaigns. In 2018 the airline partnered with Girlguiding to sponsor the Aviation Badge for Brownies to get girls interested in flight at an early age. To date over 18,000 girls aged seven to 10 have completed or are working towards their Aviation Badge.

As a result of its Amy Johnson Initiative, easyJet has more than doubled the number of female pilots with the airline since 2015 to over 260 female pilots today. While easyJet’s female pilot numbers continued to increase in 2020, the effect of the pandemic on the travel industry and on pilot recruitment will impact the ability for more women to join the airline as pilots in the short term. The airline is therefore focusing on making the pipeline of future aviation talent more diverse, by continuing to raise the profile of the career in schools to ensure there is diverse community of aspiring pilots to recruit and drive a shift in gender balance for the future.

The airline’s pilot virtual school visits program comes as schools return to the classroom and follows the launch of easyJet’s ‘Flightsize’ online lessons earlier this month to help parents juggling home schooling and home working in lockdown, to keep kids entertained and engaged with free educational videos fronted by the airline’s pilots.

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easyJet announces new cabin bag policy on flights from February 10, 2021

easyJet (UK) made this announcement:

For flights from February 10, 2021, the seat a customer books will determine what they can bring onboard:

  • For flights from February 10, 2021, the seat a customer books will determine what they can bring onboard
  • All customers will be able to bring onboard an under seat cabin bag for free and customers booking an Up front or Extra legroom seat can bring an additional large overhead cabin bag 
  • Customers with an existing booking for travel after 10 February will be offered Hands Free for free so they can still bring their large cabin bag 
  • New policy will improve boarding and punctuality and give customers certainty of what they will have with them onboard.

 

easyJet, Europe’s leading airline, has announced that its cabin bag policy will change onboard flights from February 10, 2021. The new policy means that all customers can take a small under seat cabin bag (max 45x36x20cm) onboard free of charge which must fit under the seat in front. This will enable them to bring all the essentials for their journey or enough for a short trip.

Customers who have booked an Up front or Extra legroom seat will be able to bring onboard an additional large cabin bag (max 56x45x25cm), which will travel in the overhead locker. easyJet Plus cardholders and FLEXI fare customers will also continue to have an additional large cabin bag included in their booking, subject to space onboard.

The size of easyJet’s small under seat cabin bag and large overhead cabin bag remain among the most generous for air travel and there continues to be no weight limit for any cabin baggage.

The limited overhead locker space on aircraft has meant that customers can’t always be certain they will have their cabin bag onboard with them and so for those who want certainty, booking an Up front or Extra legroom seat will provide this. The new policy will also reduce queue times during boarding and other associated delays which occur due to putting excess cabin bags in the hold and so the move will lead to improved punctuality for all customers.

There are between 42 and 63 Up front and Extra legroom seats available to book onboard each flight depending on the aircraft type. These range in price starting from £7.99 and purchasing this seat type will allow customers to bring onboard a large overhead cabin bag in addition to a small under seat cabin bag; this is in addition to other travel benefits included in booking these seat types, which include Speedy boarding and dedicated easyJet Plus Bag Drop for any hold luggage.

The new policy will be applied on all flights on and after February 10, 2021.

• Customers who are traveling from February 10 and have already booked an Up front or Extra legroom seat do not need to make any changes to their booking and can bring a large cabin bag.

• Customers who have already made bookings for travel from 10 February and have not booked an Up front or Extra legroom seat will be able to bring on board a small under seat cabin bag. In addition to this we will be offering them easyJet’s Hands Free product free of charge should they wish to still bring a large overhead cabin bag in addition to their small under seat cabin bag. Hands Free enables customers to check their large overhead cabin bag into the hold at bag drop. They can also amend their booking to purchase an Up front or Extra legroom seat should they wish to bring a large cabin bag into the cabin.

• For all bookings made from today onwards for travel from February 10, 2021 the new policy will apply.

The airline will continue to allow customers to bring some additional items with them into the cabin free of charge such as medical equipment and continues to provide options to ensure it is as easy as possible for families to travel. It’s still free to bring a baby changing bag onboard in addition to cabin bag allowance. Infants with booked seats and children over two years old continue to have the same cabin bag and hold luggage allowance as adults. Customers travelling with a child who requires them can still bring two items for free in addition to cabin bag allowance including a travel cot, pushchair, double pushchair, buggy, car seat, collapsible or non-collapsible pram, booster seat and/or baby back carrier. If you need to use any of these to get to the boarding gate they’ll be collected before boarding the plane and put in the hold for free to collect at the baggage carousel on arrival. If these items are within the dimensions of the large overhead cabin bag they can go on board if there is room, or checked into the hold for free at the gate.

Customers can also go ‘Hands Free’, which is a great value option to bring a bit extra for your trip. With Hands Free, customers can bring a large cabin bag to easyJet Plus Bag Drop and have it delivered at the baggage carousel on arrival, for just £7 per bag per flight or if you’re travelling in a group its just £16 for between three and six bags. Hands Free can be purchased in advance of your flight or at the easyJet Plus Bag Drop when you arrive at the airport.

easyJet also has a range of hold bag options which enable customers to purchase up to three hold bags for each traveller on the booking, including children and infants. A standard hold bag is 23kg and customers can buy extra weight in 3kgs units on easyJet.com up to a maximum of 32kg per bag. If customers are travelling with family or friends on the same flight and booking, they can pool their total weight allowance. A 15kg bag option is also available.

The new cabin bag policy will also apply to easyJet holidays customers, however all easyJet holidays continue to include 23kg of hold luggage per person as standard.

easyJet continues to offer flexibility for its customers, providing the option to change their flights without paying a change fee up to 14 days before departure. If government restrictions change we’ll also remove the change fee, even within 14 days of departure, so customers can easily change their plans last minute.

easyJet reports €1.4 billion (£1.27 billion, $1.6 billion) yearly loss; first loss in 25 years

Commenting on the results, Johan Lundgren, easyJet Chief Executive said:

“I am immensely proud of the performance of the easyJet team in facing the challenges of 2020. We responded robustly and decisively, minimising losses, reducing cash burn and launching the largest Cost Out and restructuring program in our history – all while raising more than £3.1 billion in liquidity to date.

“easyJet has not only withstood the impact of the pandemic, but now has an unparalleled foundation upon which to emerge strongly from the crisis. Our unmatched short haul network and trusted brand will see customers choose easyJet when returning to the skies.

“While we expect to fly no more than 20% of planned capacity for Q1 2021, maintaining our disciplined approach to cash generative flying over the winter, we retain the flexibility to rapidly ramp up when demand returns.

“We know our customers want to fly with us and underlying demand is strong, as evidenced by the 900% increase in sales in the days following the lifting of quarantine for the Canary Islands in October. We responded with agility adding 180,000 seats within 24 hours to harness the demand.

“And last week we saw the welcome news about a possible imminent vaccine roll out.

“I would like to thank everyone at easyJet for their work which has left us well positioned and expecting to bounce back strongly.”

Summary

 In the year ending 30 September 2020, through its disciplined and prudent approach, easyJet has: o Focused on cash generative flying
o Successfully cut operating costs and capex in order to reduce cash burn
o Raised over £2.4 billion in liquidity

o Retained strong customer satisfaction scores

  •   Due to the impact of COVID-19, passenger numbers for the year ending 30 September 2020 decreased by

    50.0% to 48.1 million (2019: 96.1 million)

  •   Capacity1 decreased by 47.5%
  •   Load factor only decreased by 4.3 percentage points to 87.2% due to a prudent approach to capacity
  •   Total revenue decreased by 52.9% to £3,009 million (2019: £6,385 million). Total Airline revenue per seat2 decreased by 10.6% to £54.35 (2019: £60.81). Airline revenue per seat at constant currency3 for the year ending 30 September 2020 decreased by 10.3%, reflecting growth of 10.2% in H1 and contraction of 27.5% in H2
  •   Headline Airline cost per seat excluding fuel at constant currency3 increased by 30.2% to £56.33, mainly due to the volume impact of the H2 capacity decrease. Headline Airline cost per seat increased by 21.7% to £69.03 (2019: £56.74)
  •   Largest cost-out programme launched in easyJet’s history
  •   100% of CO2 from fuel and operations were fully offset, as easyJet remains the only major airline to operate

    fully carbon neutral flying on all flights

  •   Non-headline costs of £438 million (2019: £3 million positive). Total Airline cost per seat, including the impact of non-headline items was £77.01 (2019: £56.71)
  •   Headline loss before tax of £835 million (2019: £427 million profit), within the guidance range of £815 to £845 million
  •   Reported loss before tax of £1,273 million (2019: £430 million profit)
  •   Headline ROCE for the year decreased to (19.9)% (2019: 11.4%)
  •   Robust balance sheet strength, with total liquidity raised during COVID-19 of £3.1 billion, a net debt position of £1.1 billion (2019: net debt of £326 million) and investment grade credit ratings
  •   The board will not be recommending the payment of a dividend, in light of the loss for the year (2019: 43.9p per share dividend paid)

    Outlook

  •   Based on current travel restrictions in the markets in which we operate, easyJet expects to fly no more than c.20% of planned capacity for Q1 financial year 2021
  •   We remain focused on cash generative flying over the winter season in order to minimise losses during the first half. We retain the flexibility to rapidly ramp up capacity when we see demand return
  •   Capital expenditure for the financial year to 30 September 2021 is expected to be around £600 million
  •   easyJet has been operating since March 2019 such that it is ready for all possible Brexit outcomes. We are structured as a pan-European airline group with three Air Operator Certificates based in Austria, Switzerland and the UK. Around 45% of our equity capital is held by qualifying European nationals
  •   At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any further financial guidance for the 2021 financial year

More from BBC.

Berlin Brandenburg Airport Willy Brandt starts operations

The new Terminal 1 at Berlin Brandenburg Airport Willy Brandt (BER) was opened on October 31 with the landing of the first two aircraft operated by easyJet and Lufthansa. Upon arrival, the passengers, including easyJet CEO Johan Lundgren and Lufthansa CEO Carsten Spohr, were welcomed in Terminal 1 by the head of the airport company, Engelbert Lütke Daldrup. The symbolic opening act took place in a small circle and was also attended by the Minister-President of the State of Brandenburg, Dietmar Woidke, the Governing Mayor of Berlin, Michael Müller, the Federal Minister of Transport and Digital Infrastructure, Andreas Scheuer MdB, and the Chairman of the Supervisory Board of the airport company, Rainer Bretschneider. The first commercial flights will arrived at Terminal 1 in the evening, while the first easyJet flight to London Gatwick will departed from here in the morning of November 1.

BER boasts excellent transport links. In addition to a dedicated motorway connection, a new six-track railway station under Terminal 1 ensures direct access to rail services. The station had previously already been commissioned on 25 October 2020. It is expected that around two thirds of passengers will reach the airport by train. Numerous bus lines also connect the airport with Berlin and the surrounding area at frequent intervals.

The airport covers a total area of 1,470 hectares, the equivalent of around 2,000 football pitches. Terminals 1 and 2 are located between the two parallel runways, while Terminal 5, the former Schönefeld Airport, is in the northern area. The two runways can be operated independently. In addition to the northern runway, which has been the main runway used so far, flights will also be operated from the southern runway starting from November 4.

The new airport concentrates all air traffic in the German capital region in one location with a total capacity of over 40 million passengers per year. Around 25 million passengers can be handled at Terminal 1. This means that sufficient capacity is available at Germany’s third largest airport location. More passengers are expected to board and disembark at BER than at any other location in Germany. This modern infrastructure will allow for a significant increase in long-haul services and connecting traffic in the future.

"Hauptstadtflieger" ("Capital City Plane") for the first LH flight to new Berlin Airport (BER) from MUC

Above Copyright Photo: Lufthansa Airbus A320-271N WL D-AINZ (msn 9442) (Hauptstadtflieger – BER) MUC (Arnd Wolf). Image: 951788.

 

easyJet sells and leases back nine Airbus A320 family aircraft to raise capital

easyJet issued this statement:

Following high levels of demand from the operating lease marketplace, easyJet  has engaged with a number of operating lessors to raise further liquidity, which will be used to further strengthen easyJet’s financial position. easyJet confirms the sale and leaseback of nine aircraft with two counter parties. The transactions generate total cash proceeds of $398.6 million (€337.3 million).

The first transaction was executed with Wilmington Trust SP Services (Dublin) Limited for the sale and leaseback of five Airbus A320 family aircraft. The aircraft will generate cash sales proceeds of $191.1m (approximately £146.5m), and are leased for an average term of 117 months, creating lease obligations of £123.7m. The assets had a net book value at the time of transaction of approximately £116.2m.

The second transaction was executed with Sky High 112 Leasing Company Limited for the sale and leaseback of four Airbus A320 family aircraft. The aircraft will generate cash sales proceeds of $207.5m (approximately £159.1m), and are leased back for an average of 116 months, creating lease obligations of £108.0m. The assets had a net book value at the time of transaction of approximately £140.2m.

Over the terms of the nine leases the average incremental net annual headline cost reflected in easyJet’s income statement will be c. £15 million, which is driven by increases in interest charges and depreciation.

Once these two transactions are completed, easyJet will retain 152 fully owned and unencumbered aircraft, representing approximately 44% of the fleet.

easyJet will continue to review its liquidity position on a regular basis and will continue to assess further funding options, including those that exist in the robust sale and leaseback market.

easyJet aircraft photo gallery: