EasyJet Swells Capacity as U.K. Travel Rebound Gathers Pace
EasyJet Starts to Scale Up Capacity as Omicron Curbs Recede
(Bloomberg) -- EasyJet Plc will pour capacity into the U.K. this summer as easing travel curbs boost demand and make the country a key battleground for airlines emerging from two years of Covid-19 disruption.
Bookings in Britain are surging, according to the Luton, England-based carrier, which plans to lift seating to near normal levels by the summer, meeting the challenge of rivals like Wizz Air Holdings Plc that are also adding capacity.
Demand in Britain is bouncing back as the threat from the omicron variant of the virus recedes and the government lifts testing requirements for vaccinated travelers. EasyJet will deploy two-thirds of pre-pandemic seating this quarter, preparing for the start of the summer timetable in March and the Easter holidays in April.
“The U.K. is now leading on bookings versus Europe for the first time since spring 2020.” Chief Executive Officer Johan Lundgren said in a phone briefing. He said a survey conducted by EasyJet suggests Britons plan to spend more on vacations than ever this year, with two-thirds citing a foreign trip as a priority.
Traditional beach holidays are likely to recover quickest, the CEO said, leading EasyJet to target Greece and Turkey, with Spain also showing some “quite encouraging signs.”
Shares of EasyJet traded 0.8% higher at 640.40 pence as of 9 a.m. in London and are up 15% this year.
Gatwick Battle
Burgeoning demand in the U.K. is set to unleash frenzied competition at EasyJet’s main Gatwick base south of London, where the carrier is being challenged by a host of other operators. Lundgren said his company plans to deploy 79 jets at the hub, 16 more than prior to the pandemic.
Wizz Air last month acquired 15 pairs of daily operating slots to bolster its Gatwick business and CEO Jozsef Varadi said Wednesday his company is pulling out all the stops to enhance its U.K. presence. The company is targeting system-wide summer capacity 50% higher than in 2019 after swelling its fleet.
British Airways is also gearing up for the resumption of short-haul trips from Gatwick suspended during the pandemic. Flights will begin from March operated by a new lower cost subsidiary, BA Euroflyer.
Sister company Vueling, IAG’s low-cost arm, is likewise expanding at Gatwick, with the addition of five new routes, the airport said last month.
Ryanair Holdings Plc, Europe’s biggest discount carrier, has a smaller presence at Gatwick and will provide an update on its earnings and summer plans Monday.
EU Revival
Lundgren said he sees a similar recovery in demand in the Europe Union once travel restrictions are dropped there and that “testing for travel across our network should soon become a thing of the past.”
Low-cost carriers are seeking to win market share across the region as full-service carriers see their networks compromised by the slow return of business and long-distance trips, which their short-haul flights feed.
Both Ryanair and Wizz are growing in hot markets such as Italy, where Alitalia successor ITA Airways is a re-energized contender.
EasyJet posted a loss of 213 million pounds ($286 million) in its fiscal first quarter through December, though the loss narrowed from 424 million pounds a year earlier.
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