Aviation still in crisis, warns easyJet boss
The boss of easyJet has warned that the aviation industry remains in crisis - despite expanding his airline's summer flight schedule following a rise in demand.
Johan Lundgren hit out at ministers for failing to prop up the industry with extra support after planes were grounded worldwide, saying a cut in air passenger duty coul have provided a vital crutch.
However, the airline said summer bookings are performing well and it now expects to fly about 40pc of normal capacity between July and September, up from the 30pc it predicted in June.
Criticising Boris Johnson's aviation policy, Mr Lundgren said: "There has been nothing. And that is very disappointing.
"I don’t think the moment has gone because we are still in crisis, this is still a very difficult circumstance.
"We continue to urge the Government to come out with a programme and explain what they want aviation in the UK to look like in the future. What is the plan for aviation in the UK going forward?"
The lack of state support did not stop easyJet from staying relatively upbeat about passenger demand.
The budget airline is burning through less cash than previously estimated now its planes have returned to the skies, Mr Lundgren said.
Investors took heart at the company's quarterly results, which included a £324m pre-tax loss for the three months to June compared to a £174m profit for the same period last year.
Shares rose almost 9pc, although the stock is still trading about two-thirds below its pre-crisis peak.
Since the carrier restarted flights in mid-June demand has picked up. In the last two weeks of the quarter it carried 117,000 passengers in the 132,000 seats it had available.
The higher-than-expected demand represents a rare positive update for the beleaguered industry, with fears growing that a second wave of virus cases in Europe will prompt further travel restrictions and delay any recovery.
Last week Ryanair was forced to cut its annual passenger target, while British Airways owner IAG said it did not expect pre-crisis passenger levels to return until at least 2023.
The industry was dealt a fresh blow last month when Spain was added to the UK's quarantine list, as concerns grow that other popular destinations for UK holidaymakers will also be added.
According to the World Travel & Tourism Council trade group, nearly 3m UK jobs and 197m worldwide are set to be lost due to a collapse in travel.
Mr Lundgren said a 14-day quarantine for arrivals from Spain will most likely encourage people to visit alternative sunspots.
EasyJet, which plans to axe 4,500 jobs, said it remains focused on costs after total cash burn for the quarter came in at £774m, compared with previous estimates of £1bn.
The company did not provide any forecasts for the current financial year due to continued uncertainty over Covid.
Daniel Roeska, an analyst at Bernstein, said EasyJet’s seat-occupancy level and a lower-than-expected cash outflow were both modestly encouraging.
