- The decision is an outcome of increased passenger demand to escape lockdown
- Shortly after the news, EasyJet’s shares in the market rose to about 9% on Tuesday
- The coronavirus had a severe impact on the Airlines and the companies are on a pace to recover from it
Better than predicted
After witnessing a better than expected demand in passenger flights, EasyJet on Tuesday decided to expand its schedule as more people plan to evade the lockdown. The low-cost airline said it has decided to increase to 40 per cent of its capacity in the quarter ending in September, up from its previous prediction of 30 per cent. It is expected to provide almost 1000 flights in the month of August. The airlines started to fly again in June after a severe collapse in the industry due to the coronavirus crisis.
Among the holidaymakers, destinations like Faro and Nice gained popularity with an increased load factor of 84% in July. The passengers are now looking at beach destinations in Croatia, Greece and Turkey.
Johan Lundgren, Chief executive, said that he was encouraged by the “higher than expected demands” in July with the vacationers. “Returning to the skies again allows us to do what we do best and take our customers on much-needed holidays,” he said.
On the way to recovery
As a result of the decision, shares of the company have now climbed to 9% on Tuesday, although the stock is still trading about two-thirds below its pre-crisis peak. The company had initially encountered a pre-tax loss of 325 million euros due to the collapse in air services caused by Covid-19.
Previously this year, the airlines have announced to reduce staff members by up to a third. The job cut proposal was a result of major restrictions by governments all over the world due to the pandemic and the subsequent reduction in passengers.
Johan Lundgren criticised the government for restrictions imposed on travelling without a prior warning. He called for more participation from the government to address the present difficulties faced by the aviation sector.
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