Airlines are used to thinking on their feet and EasyJet has certainly been busy trying to find ways in which to generate as much revenue as possible during the pandemic.
Having raced to cut costs in the business, it is now shifting attention to customers in Continental Europe where there are more opportunities to make money than the UK.
“Many companies the size of EasyJet would not be able to adapt so quickly, so credit must be given to the company for being able to shift a lot of moving parts,” says AJ Bell’s Russ Mould.
“Nonetheless, it must still cope with two prevailing negative factors.
“First is that customers are booking a lot closer to the fly date, which means earnings visibility isn’t as strong as pre-pandemic.
“Second is that EasyJet still only has a fraction of the number of seats available to book compared to before Covid struck the world. That’s because demand is still mixed towards flying as government restrictions keep changing on a weekly basis, putting a lot of people off from going by plane on holiday this year.
“Reduced capacity helps to keep a lid on unnecessary costs if the pool of willing flyers has shrunk, but it also indicates the fragile state of the airline industry at a time when many other industries are busy investing for the future, having put Covid in the rear-view mirror months ago.
“The worst thing that could happen to EasyJet now is another wave of Covid infections causing governments in Europe to impose new lockdown measures.
“It’s summertime and the airline industry is meant to be at that point where bookings take off, and so do more planes. A lot can change in the next six to eight weeks, but every day counts for an industry that is still losing a lot of money.”