EasyJet has reported robust demand for flights during peak periods such as half term, Christmas and New Year, despite the cost-of-living crisis affecting households across the UK. The airline's chief executive, Johan Lundgren, told the BBC that people are prioritising holidays over other spending, with 70% of those surveyed saying they would cut back on eating out or buying new clothes to afford travel abroad.
The low-cost carrier narrowed its losses for the year to 30 September, citing a sharp bounceback in sales. However, Mr Lundgren acknowledged that demand outside peak periods remained below usual levels, and the airline faces 'big cost increases' from higher fuel prices, a stronger US dollar and wage demands.
EasyJet's survey of 2,000 people found that 64% plan to fly abroad in 2023. Mr Lundgren noted that budget airlines tend to perform well during economic downturns as 'people gravitate towards value'. He declined to specify how much ticket prices might rise next summer, but rival Ryanair has warned that the era of €10 tickets is over, with average fares expected to rise from €40 to around €50 over five years.
The company faced 'multiple headwinds' in the past year, including Covid restrictions and the impact of Russia's invasion of Ukraine on fuel costs. Despite these challenges, Mr Lundgren said there was 'a great deal of pent-up demand' this summer, even amid economic uncertainty.
