Easyjet to reduce flying capacity amid quarantine chaos
Budget carrier Easyjet today said that it would reduce flying capacity for the fourth quarter due to changes to the UK’s quarantine regime.
In a statement, the airline said that the “constantly evolving” restrictions, including yesterday’s decision to add seven Greek islands to the “red list”, was “negatively affecting” customer confidence.
As a result, Easyjet said it would fly at slightly less than the 40 per cent capacity that it had previously been targeting.
“This is the result of continued schedule thinning as we continue to focus on profitable flying”, it said.
It also added that it would not provide any forward looking guidance due to the constant changes to the quarantine policy. Shares in Easyjet fell 6.1 per cent on the back of the announcement.
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown: “Just a month ago sunseekers appeared to be providing an unexpected boost to the firm’s performance, and the firm’s forecast was for an upgrade in capacity from 30 per cent to around 40 per cent, but now easyJet says with such an uncertain outlook it can’t provide any further financial guidance.
“The move shows what a desperate position airlines are in at the moment, as they grapple with the continued fear of virus contagion and shifting government policies.”
Chief executive Johan Lundgren said: “We know our customers are as frustrated as we are with the unpredictable travel and quarantine restrictions.
“We called on the government to opt for a targeted, regionalised and more predictable and structured system of quarantine many weeks ago so customers could make travel plans with confidence.”
The UK’s airlines have been up in arms over the government’s quarantine policy, which has seen the list of countries to which travellers can go without needing to self-isolate for 14 days be gradually whittled away since “travel corridors” were introduced in July.
The majority of the most popular European holiday destinations, including Spain, France, Croatia and now Greek islands such as Mykonos and Zante, have all had restrictions reimposed, as well as several Caribbean islands.
Easyjet repeats calls for state support
With the airlines industry now about to enter the unprofitable winter period, Lundgren called on the government to provide sector-specific support to keep airlines afloat over the coming months.
“We again call on the Government to provide sector specific support for aviation which needs to take the form of a broad package of measures including the removal of Air Passenger Duty for at least 12 months, the alleviation of Air Traffic Control charges along with continuation of the slot rule waiver”, he said.
“These steps will support the retention of skills in the sector – all of which would support jobs and promote connectivity.”
Yesterday it was revealed that ministers would unveil a plan to speed the recovery of the sector over the autumn, but MPs warned that it “could not come soon enough” for the troubled industry.
Lawmakers will debate the issue on Thursday in the House of Commons, with backbench Tory MPs widely expected to voice their concerns over the speed with which such help has been rolled out.
Back in March, chancellor Rishi Sunak said that the aviation industry would be in line for specific support, but details of any such help have as yet been few and far between.