EasyJet declares aviation recovery ‘under way’ as it forecasts £1bn loss

EasyJet declared the recovery in aviation “is under way” as it forecast its second consecutive £1bn annual loss. The British low-cost airline on Tuesday said there had been strong demand for flying since the UK relaxed strict travel rules last month. The recovery is a big relief for the carrier after it predicted a loss of between GBP1.135b and GBP1.175b for its financial year ending in September, its second on record after losing more than GBP1b in 2020. EasyJet plans to fly 70% of its 2019 levels in the final quarter of the year, up from the 60% it had previously forecast as demand for winter sun destinations helped it add 100,000 seats to its schedules. “It is clear the recovery is under way and easyJet is trying to seize opportunities as we emerge from the pandemic,” said CE Johan Lundgren, pointing to signs of the return of business travel and overall bookings for the next six months that have been running at double the level of last year. “We have seen city breaks beginning to return alongside growing demand for leisure travel from customers looking for flights and holidays to popular winter sun destinations,” he added. Alex Irving, an aviation analyst at Bernstein, said the increased capacity forecast “bodes well for the winter season”. The Luton-based airline had rejected a takeover approach from Hungarian rival Wizz Air, the first sign of potential consolidation in an industry that has been rocked by the pandemic and travel restrictions.<br/>