EasyJet counts $160 million loss from cancellations

The British airline says the losses were due to cancellations and delays caused by staff shortages at airports in the three months to the end of June

Reuters
Published : 26 July 2022, 07:54 AM
Updated : 26 July 2022, 07:54 AM

British low-cost airline easyJet EZJ.L said cancellations and delays caused by staff shortages at airports and in the airhad cost it 133 million pounds ($160.3 million) in the three months to end 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 pounds 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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