London (Reuters) – The desire to travel after the end of the corona pandemic makes the British low-cost airline Easyjet confident.
The board expects a record profit before taxes in the current quarter (July to September), the airline announced on Thursday. At the same time, CEO Johan Lundgren said that should holidaymakers choose other destinations because of the heat in southern Europe, for example, Easyjet would be able to change its routes. The airline has the flexibility to change routes based on demand, even annually if need be. “So I don’t think it will be a big problem for us,” said Lundgren. So far, however, the desired destinations of holidaymakers have remained unchanged despite the current heat wave.
The business with package deals for vacationers in particular is on a growth course: “We can still grow enormously,” said Easyjet Holidays boss Garry Wilson in a Reuters interview. Serving UK customers only, EasyJet Holidays competes with Jet2, TUI and others for the sale of Mediterranean beach and city break packages. The offer will be launched in Switzerland in the coming weeks. “France and Germany will then probably follow quite quickly,” he announced. By offering flight and hotel in one package, EasyJet gets a bigger slice of the pie in the tourism market.
In addition to the return of the desire to travel, Easyjet is also helped by falling costs and more stable oil prices. The airline posted a pre-tax profit of £203m in the quarter just ended after a loss of £114m a year ago. Sales jumped 30 percent to £1.5 billion. Experts also expect good quarterly balance sheets from other airlines such as Lufthansa, Air France-KLM or IAG, because increasing demand is driving bookings back to the pre-crisis level.
(Report by Joanna Plucinska and Paul Sandle, written by Anneli Palmen, edited by Sabine Wollrab. If you have any questions, please contact our editorial team at [email protected] (for politics and economics) or [email protected] (for companies and markets).)
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