EasyJet Plc said summer bookings are showing signs of healthy demand and that it will redeploy its fleet previously used on flights to Israel after the Middle-East conflict forced the budget carrier to suspend that service.
The low-cost carrier reduced its winter losses by more than £50 million ($62.4 million) year-on-year, with the headline loss before tax set to be between £340 million to £360 million for the six months ended March, it said on Thursday in a trading update.
EasyJet has redistributed its capacity this summer from Israel to other parts of its network, and said that the fallout from the regional conflict has led to a direct impact of £40 million in the first half of the year. The company announced on Tuesday it had canceled flights to Tel Aviv for the remainder of the summer season through Oct. 27.
With an all-Airbus SE fleet carrying engines by CFM International Inc., EasyJet has managed to avoid major supply chain challenges unlike its rivals. Ryanair Holdings Plc has suffered delivery delays of new Boeing Co. Max jets while Wizz Air Holdings Plc faces plane groundings because of Pratt & Whitney engine issues.
EasyJet jumped 5.5% to 547 pence in London trading at the open. The stock has gained 4.8% this year, while Ryanair is up 8.7% in the period.
