REG-easyJet plc Summer 2022 Trading Update

easyJetAnnouncement

20/06/2022 07:15

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   easyJet plc (EZJ)
   Summer 2022 Trading Update

   20-Jun-2022 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside
   information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
   EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   20 June 2022

    

   This announcement contains inside information

    

                                  easyJet plc

                           Summer 2022 trading update

    

   In the quarter ending 30 June easyJet plans to operate around 140,000
   flights, carrying around 22m passengers, with capacity planned to be 550%
   of the same period in 2021. Demand for travel has returned with April and
   May passengers seven times the same months last year.

    

   Given the unprecedented ramp up, the aviation industry across Europe is
   experiencing operational issues with root causes similar to the post covid
   supply chain issues being seen in many other parts of the economy. The
   challenges include air traffic control delays and staff shortages in
   ground handling and at airports, resulting in increased aircraft
   turnaround times and delayed departures which have a knock-on effect
   resulting in flight cancellations. A very tight labour market for the
   whole ecosystem including crew, compounded by increased ID check times,
   has reduced planned resilience further. This is reflected in the flight
   caps announced recently at two of our biggest airports, London Gatwick and
   Amsterdam.

    

   In response to these caps and in order to build additional resilience,
   easyJet is proactively consolidating a number of flights across affected
   airports. This provides customers with advance notice and the potential to
   rebook onto alternative flights. Given easyJet’s high frequency network,
   we expect to be able to rebook the majority of customers on alternative
   flights, with many being on the same day as originally booked for.

    

   As a result of these pre-emptive actions, easyJet now expects its third
   quarter capacity, to 30 June 2022, to be around 87% of FY19 levels, and
   Q4, to 30 September 2022, to be around 90% of FY19 levels. There will be a
   cost impact from disruption, coupled with the enhanced resilience easyJet
   is putting in place this summer, from additional wet leased aircraft, crew
   costs and airport charges. We will therefore exceed the previously
   provided operating CASK ex fuel guidance. We believe that these
   capacity/cost impacts are a one-off this summer as we would expect all
   parties to build greater resilience in time for 2023 peak periods.

    

   Booking momentum has continued with demand for travel this summer
   remaining strong, with Q3 currently 86% sold with ticket yields up c.2%
   and Q4 48% sold and ticket yields up c.14%. This Q4 booking position is
   broadly in line with where we were at the same point in FY19. We will
   continue to fine tune our schedule in the light of industry conditions as
   we move through the summer season in order to deliver for our customers.

    

   The medium-term outlook for easyJet remains attractive and in the last
   couple of days, we have been notified that we have won an additional three
   aircraft worth of slots at Lisbon Airport. These slots will become
   available from this winter.

    

   Johan Lundgren, easyJet Chief Executive said:

    

   “Delivering a safe and reliable operation for our customers in this
   challenging environment is easyJet’s highest priority and we are sorry
   that for some customers we have not been able to deliver the service they
   have come to expect from us.

    

   “While in recent weeks the action we have taken to build in further
   resilience has seen us continue to operate up to 1700 flights and carry up
   to a quarter of a million customers a day, the ongoing challenging
   operating environment has unfortunately continued to have an impact which
   has resulted in cancellations.

    

   “Coupled with airport caps, we are taking pre-emptive actions to increase
   resilience over the balance of summer, including a range of further flight
   consolidations in the affected airports, giving advance notice to
   customers and we expect the vast majority to be rebooked on alternative
   flights within 24 hours. 

    

   “We believe this is the right action for us to take so we can deliver for
   all of our customers over the peak summer period in this challenging
   environment.”

    

   For further details please contact easyJet plc: 

    

   Institutional investors and analysts:

   Michael Barker Investor Relations +44 (0)7985 890 939
   Adrian Talbot  Investor Relations +44 (0)7971 592 373

    

   Media:

   Anna Knowles    Corporate Communications +44 (0)7985 873 313
   Edward Simpkins FGS Global               +44 (0)7947 740 551 / (0)207 251
                                            3801
   Dorothy Burwell FGS Global               +44 (0)7733 294 930 / (0)207 251
                                            3801

    

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   ISIN:           GB00B7KR2P84
   Category Code:  MSCU
   TIDM:           EZJ
   LEI Code:       2138001S47XKWIB7TH90
   OAM Categories: 2.2. Inside information
   Sequence No.:   169227
   EQS News ID:    1378685


    
   End of Announcement EQS News Service

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