EasyJet predicts record summer profits as travel boom continues

EasyJet has forecast record profits this summer thanks to high ticket prices and strong demand for travel, but warned its performance was dependent on negotiating “unprecedented” air traffic control disruption. The low-cost airline on Thursday reported record pre-tax profits of GBP203m for the three months to the end of June, up from a GBP114m loss a year earlier. EasyJet is the first major European airline to report this quarter, with carriers across the region expected to report strong earnings following a boom in demand for flying that has been virtually untouched by the weak economy. EasyJet said it expected to generate “another record” pre-tax profit in the current quarter ending in September, but cautioned that its guidance was subject to its operations navigating “challenging conditions” caused by “unprecedented” air traffic control disruption. Last week easyJet announced plans to cancel 1,700 flights this summer — about 2% of its overall schedule — because of air traffic control issues. The skies over Europe are congested because of the closure of around 20% of the region’s airspace following Russia’s full-scale invasion of Ukraine, while the air traffic control industry has also seen some staff shortages and strikes. “We are absolutely focused on mitigating the impact of the challenging external environment on our customers and flying them on their well-earned holidays,” said chief executive Johan Lundgren. Lundgren said he did not expect to be forced to cancel another wave of flights, unless the situation “deteriorated” further. While air traffic delays are a concern, airlines and airports have largely fixed the staff shortages that caused sweeping disruption across Europe last year, and easyJet said it was “fully crewed”. Lundgren said the scorching heatwaves hitting large parts of Europe did “not seem to be a deterrent” to holidaymakers, and had not affected bookings.<br/>