EasyJet counts US$160mil loss from cancellations

EasyJet counts US$160mil loss from cancellations

Ramp up in aviation and tight labour market led to greater cancellation rates than normal.

Despite challenges, EasyJet flew 22 million passengers and kept 95% of its schedule in Q2. (AP pic)
LONDON:
British low-cost airline EasyJet said cancellations and delays caused by staff shortages at airports and in the air had cost it £133 million (US$160.3 million) in the three months to the end of June, but it added that operations had improved in July.

“We have taken action to build the additional resilience needed this summer and the operation has now normalised,” chief executive Johan Lundgren said after the group reported a headline loss before tax of £114 million for the quarter.

An “unprecedented ramp up” in aviation, coupled with a tight labour market, had resulted in operational challenges culminating in higher levels of cancellations than normal, it said.

EasyJet cut its summer schedule last month, in part to comply with caps imposed by London Gatwick and Amsterdam Schiphol airports, to stabilise its operations and minimise passenger disruption.

Despite the problems, it said it had operated 95% of its planned schedule in the quarter and had flown 22 million passengers.

It said July, August and September was currently 71% booked, with a load factor slightly ahead of 2019 and sold ticket yield 13% above pre-pandemic levels.

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