EasyJet today warned of “unprecedented” air traffic control (ATC) disruption this summer amid strong demand for flights.
The UK budget carrier last week cancelled 1,700 flights out of a total of 90,000 across its network with the majority of cuts from its main Gatwick base.
Reporting a £317 million rise in quarterly pre-tax profits to £203 million, the airline said: “More constrained air space and flow rate restrictions are resulting in unprecedented ATC disruption as well as increased ATC strike days up 40% year to date verses 2019.
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“Management have taken action to mitigate the impact of this on our customers.”
EasyJet forecast a record summer quarter but added: “This guidance is subject to the operational environment with the whole industry seeing challenging conditions this summer.”
Chief executive Johan Lundgren insisted: ”We are absolutely focused on mitigating the impact of the challenging external environment on our customers and flying them on their well-earned holidays.”
His comments came in a trading update which revealed a £49 million pre-tax profit for easyJet holidays, up from £22 million in the same quarter to June 30 last year.
The tour operating arm was described as “outperforming” in the three months and is expected to deliver annual profits of more than £100 million. Package holiday bookings are up by more than 100% for winter 2023-24.
EasyJet reported “good booking momentum” for the winter, with sold ticket yields and load factors ahead year-on-year and capacity up by more than 15%.
Capacity for the three months to June 30 was up by 5% to 26.5 million seats with a 90% passenger load factor, rising to 91% in June. Passenger carryings increased by 7% as group revenue was up by 34% to £2.3 billion.
“Revenue continued to benefit from strong demand for easyJet’s leading network, the continued outperformance of ancillary products and easyJet holiday,” the airline said.
EasyJet revealed that it is seeking options to secure additional firm orders for its longer term fleet plan in addition to 163 aircraft on order for delivery through to 2028.
“This would allow EasyJet to replace older aircraft with additional options to deliver future growth,” the airline said.
Reviewing the past quarter, Lundgren said: “Our Q3 performance has been underpinned by strong passenger demand for easyJet’s network and services.
“We continue to provide great value to customers with around half of easyJet’s fares currently on sale still under £50.
“We continue to see good momentum as we move into Q4 where we will be operating over 160,000 flights and expect to deliver another record PBT [profit before tax] performance.
“This winter we are adding more than 15% capacity and we see bookings ahead of the same period last year.”
Commenting on the trading update, Ruth Griffin, leisure partner at international law firm Gowling WLG, said: “Despite the end of travel restrictions and fuel prices starting to drop, there is still major challenges on the horizon ahead for the airline industry, highlighted by easyJet’s recent decision to cancel 1,700 flights over July, August and September.
“Restricted airspace over Ukraine due to the ongoing conflict is causing issues with flight routes, while the possibility of further air traffic control strikes in Europe will add to the turbulence being felt across the sector.
“CEO Johan Lundgren has introduced new cost control measures as well as additional routes to its offering, but more is needed if the airline is to strengthen its margins and enhance its resilience to international affairs.
“The company’s approach to achieving net zero will support this, and strong demand for travel from consumers gives shareholders a reason to be positive, but easyJet will need to remain competitive and provide affordable pricing in order to take advantage of the millions planning their holidays over the summer.”
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