Tag Archives: easyJet (UK)

Sustainable aviation fuel introduced for the first time at Gatwick Airport through a collaboration between Neste, Q8Aviation, easyJet and Gatwick Airport Ltd

Neste Corporation issued this report:

With the first one departing today, a total of 42 easyJet flights operating from Gatwick Airport are to be powered by a 30 percent Neste MY Sustainable Aviation Fuel blend. This important milestone marks the first time a departing flight at Gatwick has used sustainable aviation fuel (SAF) and is also the first usage by any easyJet service. It confirms the strong commitment of all parties involved – international aviation fuel supplier Q8Aviation, easyJet, Gatwick Airport Ltd and Neste – to achieve a net carbon emission reduction in the fuel used in aviation and work towards an ultimate goal for aviation to reach net zero emissions by 2050.

Of the 42 flights running on Neste MY Sustainable Aviation Fuel blend, 39 of these will be the easyJet flights operating from Gatwick to Glasgow throughout the COP26 Climate Change Conference, which runs from 31st October to 12th November. Across all 42 flights, greenhouse gas emissions will be reduced by up to 70 tonnes which further signals the industry’s intentions to reduce greenhouse gas emissions on a course to reaching net zero emissions by 2050.

Q8Aviation has delivered the first supply of Neste MY Sustainable Aviation Fuel to the fuel supply at Gatwick Airport. Neste’s market-leading sustainable aviation fuel, which is fully certified, is produced from 100% renewable and sustainable waste and residue raw materials, such as used cooking oil and animal fat waste. In its neat form and over its life cycle, Neste MY Sustainable Aviation Fuel can achieve a reduction of up to 80%* of greenhouse gas emissions compared to fossil jet fuel use.

Neste-produced SAF is blended with Jet A-1 fuel at a depot upstream of Gatwick Airport to create a drop-in fuel that is compatible with existing aircraft engines and the airport infrastructure, without requiring extra investment. Q8Aviation delivered the fuel to the main storage tanks at Gatwick Airport for supply to easyJet aircraft via the airport’s hydrant system.

The incorporation of SAF into Gatwick’s operations for today’s flight is an important proof of concept for the airport in demonstrating its continued commitment to work with its aviation partners on decarbonization. Gatwick’s own 2019 carbon footprint showed that the airport is already half-way to net zero for its own operations and is committed to achieving Net Zero direct emissions by 2040.

*) Calculated with established life cycle assessment (LCA) methodologies, among which EU RED and CORSIA.

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. As a technologically advanced refiner of high-quality oil products with a commitment to reach carbon-neutral production by 2035, we are also introducing renewable and recycled raw materials such as waste plastic as refinery raw materials. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2020, Neste’s revenue stood at EUR 11.8 billion, with 94% of the company’s comparable operating profit coming from renewable products.

easyJet will add two aircraft in Malaga, two in Palma de Mallorca and one in Faro, sees an uptick in bookings

easyJet (UK) Airbus A321-251NX WL G-UZMA (msn 8314) (NEO) LGW (Richard Vandervord). Image: 955150.

easyJet (UK) has made this announcement:

  • Building on the success of its new seasonal bases, easyJet will add two aircraft in Malaga, two in Palma de Mallorca and one in Faro from May next year
  • The investment will create around 150 direct jobs for pilots and crew under local contracts in both Spain and Portugal
  • The announcement follows easyJet’s strategy to take advantage of key growth opportunities across its network including at its seasonal bases which have proved successful during the pandemic

As the European aviation market continues to recover, easyJet has today announced it will be expanding its network of seasonal bases by adding five more aircraft across bases Malaga, Palma de Mallorca and Faro from May 2022. The investment will create around 120 direct jobs in Spain where the airline currently employs more than 400 people, all under local contracts along with 30 jobs in the Faro base.

As a result, next summer easyJet will have five based aircraft in Malaga where it is the second largest airline, and seven in Palma, bringing the Spanish fleet to 16 aircraft, including four in its base in Barcelona. It will also add an additional aircraft into Portugal at the Faro base. This means the airline will have increased its fleet based in Portugal and Spain by 70% compared to pre-pandemic levels.

Adding more capacity to the airline’s bases in Málaga and Palma builds on our successful destination bases in Southern Europe, positioning easyJet as the best option to serve these popular destinations and enabling us to capture a larger slice of peak demand. These new based aircraft will allow easyJet to reinforce existing markets, as well as explore new flows in the future that were previously inaccessible for easyJet providing the airline long term growth in these destinations.

This follows this traffic uptick:

  • Flight bookings from the UK have seen a surge since the UK government announcement, with leisure trips to Alicante, Majorca and Faro among the top destinations and October proving the most popular time for travel
  • In the coming days easyJet will be adding a further 51,000 seats for departures from the UK to beach destinations for October
  • High demand for flights to ski destinations in the New Year, with the top destinations being Geneva from Manchester, London Luton, Birmingham, Bristol, Liverpool and London Gatwick
  • easyJet holidays has seen a surge in demand, with families in particular booking for October half term with breaks to Majorca, Antalya, Tenerife and Sharm el Sheikh leading the way. There is also an increase in city break bookings, with holidaymakers happier to go away for shorter periods of time now they won’t incur additional testing costs
  • easyJet continue to provide flexibility for flights through its Protection Promise, including fee-free flight changes to any date or destination up to 2 hours before departure

easyJet has seen UK bookings surge within hours of the UK Government confirmation that from 4 October, fully vaccinated travelers will no longer be required to take a PDT (pre-departure test) to return to the UK from non-red list countries. Flight bookings for the late summer season increased significantly, with beach resorts among top destinations for this autumn and travel in October proving most popular, suggesting that Brits are keen to book a late summer break getaway.

Alicante, Majorca, and Tenerife in Spain and Faro in Portugal are proving to be the most popular destinations for travel in October. In the coming days easyJet will be adding a further 51,000 seats for departures from the UK to beach destinations for October.

With Turkey no longer on the Red list, extra seats have been added on flights from across the UK, including London Gatwick, London Luton, Manchester, Liverpool and Bristol Airports to Dalaman, a destination known for its natural coves, beautiful turquoise waters and protected natural park. Flights are also available to Antalya, a destination known as the Pearl of the Mediterranean that offers a mix of golden beaches, blue waters, ancient ruins and traditional Turkish experiences.

easyJet has also seen strong early demand for ski destinations for the New Year, with the top destinations being Geneva from Manchester, London Luton, Birmingham, Bristol, Liverpool and London Gatwick. As the UK’s largest ski airline, easyJet will be flying over 1 million seats this winter to top ski destinations including Geneva, Grenoble, Lyon, Salzburg, Turin and Innsbruck.

easyJet operates 325 routes from the UK to 94 destinations across 35 countries in Europe, North Africa and the Middle East from the UK and is one of the UK leading operators to European Green and Amber list destinations, with nearly two million seats still available for a late summer getaway.

Finally the airline urges industry and government collaboration to make zero emission flights a week:

  • Net zero emissions from flights can be achieved through joint, coordinated and decisive industry and government efforts

  • Governments should provide incentives for future early adopters of zero-emission technology to help accelerate the transition to net zero at scale

  • In the meantime,  governments should deliver on objectives for the Single European Sky and formally recognise offsetting – both is something that can have an impact right now

  • easyJet is committed to reaching net zero emissions by 2050 and actively contributing to the goals set in the European Green Deal and the Paris Agreement through a number of actions

easyJet is urging industry and government to work closely together to deliver on the zero-emission technology needed to transform the industry over the coming decade and beyond.

Speaking from Toulouse at the Airbus Summit, easyJet CEO Johan Lundgren, will say that the vision of zero-emission flying can only be brought ever-closer through coordinated action which should focus efforts on some key areas.

Firstly, governments need to support the development of hydrogen supply and infrastructure at airports alongside investments into renewable energy to support the creation of green hydrogen for aviation.

Secondly, governments will not only need to provide financial incentives to support the development and scaling up of zero-emission technology but also should be ploughing funds raised through aviation taxes into the R&D that is required.

Thirdly, airlines choosing to become early adopters of the new technology should be incentivized through reduced airspace and airport charges and also provided with tax exemptions if they are operating zero-emission aircraft and be prioritized for airport slots.

Lastly, easyJet has identified the priority need to make sure the right framework is in place to ensure progress and support for widespread adoption of zero-emission aircraft where these are feasible, such as on short-haul networks. easyJet will be using SAF in the interim, but the company believes the most sustainable long-term solution for a short-haul carrier are zero-emission aircraft.

easyJet has worked in partnership with Airbus since 2019 to support the development of a hydrogen-powered commercial aircraft by 2035. A crucial part of easyJet’s role has been to work with the manufacturer to provide a commercial airline’s perspective in the development of new zero-emission propulsion technologies for passenger planes.

Top Copyright Photo: easyJet (UK) Airbus A321-251NX WL G-UZMA (msn 8314) (NEO) LGW (Richard Vandervord). Image: 955150.

easyJet (UK) aircraft slide show:

Analysis: easyJet bid kicks off scramble for budget airline supremacy

easyJet (UK) Airbus A320-214 G-EZUZ (msn 5187) MUC (Gunter Mayer). Image: 954970.

From Reuters:

“Europe’s no-frills airlines are heralding a once-in-a-lifetime opportunity to grab market share from traditional carriers struggling to emerge from the pandemic, but each will have to overcome significant challenges to come out on top.”

Read the full article:

https://www.reuters.com/business/aerospace-defense/easyjet-bid-kicks-off-scramble-budget-airline-supremacy-2021-09-10/

Top Copyright Photo: easyJet (UK) Airbus A320-214 G-EZUZ (msn 5187) MUC (Gunter Mayer). Image: 954970.

easyJet aircraft slide show:

easyJet rejects takeover bid by Wizz Air

easyJet (UK) Airbus A320-214 G-EZWD (msn 5249) LGW (Richard Vandervord). Image: 954950.

easyJet has rejected a takeover bid by rival Wizz Air according to Bloomberg:

“EasyJet Plc rejected a takeover approach from Wizz Air Holdings Plc, according to people familiar with the plan, as its Hungarian discount rival sought to take advantage of a recovery in European flights.

The preliminary offer was conditional, all-stock and had a low premium, EasyJet said Thursday without naming the bidder. The U.K. carrier said the approach was rejected unanimously by its board and has been withdrawn.”

Top Copyright Photo: easyJet (UK) Airbus A320-214 G-EZWD (msn 5249) LGW (Richard Vandervord). Image: 954950.

easyJet (UK) aircraft slide show:

easyJet introduces cabin crew and pilot uniforms made from recycled plastic bottles

easyJet (UK) has announced that it is introducing new flight uniforms made from recycled plastic bottles.

45 bottles are used for each uniform.

The uniforms are being made by Tailored Image of Northern Ireland.

The material has a 75% lower carbon footprint than traditional polyester.

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.