BUDGET airline easyJet posted a loss it attributed to a £133 million hit from airport disruption amid a warning that labour shortages are “not going to disappear overnight”.
The carrier said its operations are getting back to normal following cuts to its flight programme as it reported a group headline loss before tax of £114m for the three months to June 30. It cited “widespread operational challenges” and flight cancellations amid staff shortages at airports.
The result was an improvement on the £318m loss seen a year ago, but it remained in the red despite easyJet’s passenger numbers jumping more than sevenfold to 22 million in the quarter.
The Luton-based airline, which employs about 560 people in cabin crew and pilot roles across Scotland, said it remains focused on ensuring “smooth operations this summer” and will continue to “fine tune” its schedule, signalling further flight cuts if needed.
It comes after airports such as Heathrow and Gatwick told airlines to cut their flight schedules after staff shortages left them struggling to cope with the ramping up of demand.
Heathrow also posted a loss before tax during the first six months of the year of £321m, which narrowed from £787m during the same period in 2021.
READ MORE: Cancelled flight details for major UK airlines
Dublin-based Ryanair earlier reported profits after tax of €170m for the three months to June 30 against net losses of €273m a year ago.
Russ Mould, investment director at AJ Bell, said: “Problems like shortage of labour aren’t going to disappear overnight.
“For now though it does look like people have been so starved of their week on the beach they’re prepared to put up with some disruption and higher costs.
“How long that can last when household budgets are under severe pressure is open to question.”
Johan Lundgren, easyJet chief executive, said its summer operations had now “normalised” and were “much improved” in July.
He said the group had flown around 5,000 flights in the past three days with no cancellations in the UK since the start of the school summer holidays.
EasyJet, which has aircraft based in Glasgow and Edinburgh, said: “The unprecedented ramp up across the aviation industry, coupled with a tight labour market, has resulted in widespread operational challenges culminating in higher levels of cancellations than normal.”
It saw around five per cent of its flight schedule cancelled in the quarter as a result.
Mr Lundgren said: “We have taken action to build the additional resilience needed this summer and the operation has now normalised.
“Despite the loss this quarter due to the short-term disruption issues, the return to flying at scale has demonstrated that the strategic initiatives launched during the pandemic are delivering now and with more to come.”
Holidaymakers are facing higher ticket prices, with summer fares 13% higher than the pre-pandemic comparable period as easyJet battles to contain costs, which overall soared to £1.9 billion in its third quarter.
The group ran 87% of its pre-pandemic flight schedule in its third quarter to June 30 and expects this to edge up to around 90% in its key summer quarter.
It stressed it expects schedules and airport operations to return to capacity ahead of next year’s peak season.
EasyJet shares closed marginally down at 373.3p, which was 0.5p, or 0.13% lower.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel