Budget carrier easyJet reported a first-half headline pre-tax loss of £701 million, compared to £193 million year-on-year, as the Covid crisis continues to take its toll.
Passenger numbers for the six months ending March 31 plunged by 89% to 4.1 million, while total revenue sank by 90% to £240 million.
The airline expects to fly about 15% of 2019 capacity levels in the third quarter of its financial year and forecasts capacity levels will start to increase from June onwards.
The airline said the results are in line with expectations and it is “encouraged by the reopening of travel across much of Europe”.
Chief executive Johan Lundgren said: “With leisure travel taking off in the UK again earlier this week where we are the largest operator to green list countries and with so many European governments easing restrictions to open up travel again, we are ready to significantly ramp up our flying for the summer with a view to maximising the opportunities we see in Europe.
“We have the ability to flex up quickly to operate 90% of our current fleet over the peak summer period to match demand.
“We know there is pent-up demand – we saw this again when green list countries were released and added more than 105,000 seats – and so we look forward to being able to help many more people to travel this summer.”
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The statement included an update about easyJet holidays, noting that four- and five-star hotels now account for about 70% of all holidays sold.
During the first half, it signed more than 40 additional flagship beach hotels which were previously under exclusive contracts with competitors, whilst expanding its cities offering with some of the world’s largest hotel chains including Hilton, Accor, Radisson and Intercontinental Hotel Group.
Holidays for winter 2021/22 were launched in December and are experiencing “very positive demand”.
It said easyJet holidays bookings for summer 2021 are currently significantly ahead of last year, although many customers are looking for further certainty around quarantine rules before booking.
The H1 statement said that late announcements of changes to travel restrictions will affect load factors and drive “an even later booking behaviour”.
Lundgren added: “Over the past six months, we have successfully undertaken a major restructuring and cost reduction process alongside maintaining an investment-grade balance sheet with significant liquidity and managing our cash burn better than expectations. Our agility, trusted brand and famous value means we are well placed to bounce back in the recovery.”
The airline said it has “robust balance sheet strength”, with total liquidity raised during the pandemic of more than £5.5 billion and a net debt position of £2 billion, compared to £467 million in the same period last year.
A cost-cutting programme aims to make about £500 million of savings in the year to September 2o21 “to help offset cost headwinds”.