EASYJET is set to reveal losses hit more than £1 billion last year as Covid wreaked havoc on the travel industry.
The airline group has suffered a turbulent 12 months on the back of fluctuating travel restrictions across Europe, which caused the business to cut flight numbers heavily as holidaymakers stayed in the UK.
Bosses will be looking to reassure investors tomorrow that plans to ramp up flights will go ahead as it enters the first restriction-free Christmas period in two years.
In a trading update last month the group said pre-tax losses for the 12 months to September are expected to be between £1.13bn and £1.17bn, slightly lower than analyst predictions.
READ MORE: ‘Amazon of the Isles’ founder plots lettings site in challenge to Airbnb
Chief executive Johan Lundgren said a surge in demand across Europe and a return of bookings to winter sun destinations like Egypt and Turkey had allowed it to ramp up flight capacity to nearly 60% of pre-pandemic levels.
He said: “October half-term bookings have been strong, particularly to the Canary Islands, where we have increased our capacity to around 140% of full-year 2019 levels.”
But investors will be eager to hear whether plans to increase capacity to 70% of pre-pandemic levels will go ahead as fears rise over a new Covid variant and a return in travel restrictions in the UK.
READ MORE: Freight companies 'dismayed' by new Brexit rules starting January 1, MSPs hear
Russ Mould, investment director at AJ Bell, said the new variant was “the worst possible news for airline operators” as they were starting to see a rebound in demand.
He said: “These companies have been under significant financial stress and will want to avoid having to go back to shareholders yet again to ask for more money to help see them through bad times, should we get new widespread travel restrictions.”
New restrictions will be beyond the control of bosses, but investors will be on tenterhooks for reassuring noises as to how EasyJet could mitigate the impact of further disruption to flights.
The news of a return in restrictions caused shares to slide across the sector. Shares in easyJet fell by as much 14% at points on Friday, while Wizz Air and British Airways owner International Consolidated Airlines both dropped by around 18% at times.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here