EasyJet sees big loss, but says travel is back

EasyJet says travel is back.

The budget airline has increased capacity to 70% of pre-crisis levels for the rest of the year.

It says there is a clear recovery in demand for business and leisure travel.

Bookings are picking up to winter sun destinations like Egypt and Turkey, and in October the airline will operate more flights to the Canary Islands than it did back in 2019.

But none of that is enough to avoid a big loss.

EasyJet says it expects a deficit of over $1.5 billion for the year to the end of September.

And it cautions that the longer-term outlook remains hard to predict.

It says customers are booking travel closer to their departure dates, making it impossible to provide guidance for next year.

Heavy dependence on the UK market has proved a drag for easyJet.

The country maintained strict rules for longer than the rest of Europe.

But Britain has recently relaxed its rules, scrapping some requirements for tests.

EasyJet says the recent changes had clearly put momentum behind bookings.

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