EasyJet passengers cancel flights over Omicron fears
LOW-COST airline easyJet says that the discovery of the new variant has already hit demand for seats.
Concern over Omicron has meant some customers are rethinking travel plans and cancelling upcoming flights.
Chief executive Johan Lundgren dealt with the issue at the budget carrier’s annual results when he unveiled a £1.1billion pre-tax loss.
He said that while short-term bookings have been hit the damage is so far not as bad as it was last year when Covid restrictions were brought in.
Mr Lundgren said: “There has been an impact, particularly on the short-term departures, but it’s not to the same level of impact and drop off we’ve seen in previous times when restrictions have been introduced.”
He added that demand for flights in January to March has held up and that easyJet still expects business to return to pre-Covid levels by the end of next year.
Having raised billions from investors and borrowing from its lenders, the budget airline believes it can take passengers from its rivals and emerge stronger from the pandemic.
Mr Lundgren said: “We remain mindful that many uncertainties remain as we navigate the winter but we see a unique opportunity for easyJet to win customers and take market share from rivals.”
EasyJet slid 36 per cent deeper into the red with a pre-tax loss of £1.1billion for the 12 months to the end of September. The airline’s revenues were down by just over half to £1.5billion.
AJ Bell investment director Russ Mould said that if there is more disruption due to new variants, it could spark consolidation among airlines.
He said easyJet would be “attractive strategically” to a number of its rivals due to its strong position in Europe.
Mr Mould said: “It could be a bleak winter for easyJet, but fortunately it raised £1.2billion a few months ago and has enough money to see it through another difficult patch.
“But what happens if we get variant after variant of Covid-19? There are only so many times that shareholders will bail out airlines with another cash injection.
“Consolidation in the airline industry seems inevitable.”