UK budget carrier EasyJet has strategically invested in a longer route sector aimed at reducing winter losses, and we hope that the route will mature in the coming season.
In a statement of results from the first half, the airline says these long leisure destinations have created productivity and utilization benefits.
However, the route also brings additional costs such as fuel and crew, adding that carriers need “naturally” and “some price stimulation.”
Sector length rose 6% in the first half, with an overall increase in capacity in the first half contributing to a 12% contribution. The longer sector weight fell by 6% in airline unit revenue figures.
EasyJet filed a pre-tax loss of £394 million ($529 million) headlines and a net loss of £292 million over the six months ended March 31st.
The results state that the timing of the Easter 2025 holiday period outside the first half and timing of capacity investments have been affected in part.
“A significant capacity investment in periods of longer leisure destinations above additional city destinations is expected to provide a platform to mature more than next winter and structurally reduce winter losses,” says Career.
EasyJet has opened more than 200 new routes in the current fiscal year and closed around 50 as part of its “continuous focus on capital allocation.”
This winter expansion is mainly concentrated on winter beaches and non-European union destinations.
In the first half, the carrier introduced eight more Airbus A320neo Family Jets.
These include the 19 A321neos and 74 A320Neos, as well as the 180 older A320 and 82 A319. There is an order backlog with 291 corporate aircraft Airbus and 100 purchase rights.
