EasyJet backs growth plan with business rebound boosting demand

EasyJet Plc is gaining confidence in its growth projections this year as corporate travel rebounds and the budget airline dodges the aircraft shortages that have crimped the plans of competitors.

The British carrier is still set to grow 8% this summer, Chief Executive Officer Johan Lundgren told reporters in a briefing on Monday, reiterating an earlier forecast. EasyJet expects to grow “more than any other European airline this summer,” and bookings for the busy travel period are strong, he said.

Passenger capacity at EasyJet is set to return to pre-pandemic levels later this year, while business travel is picking up quickly and could potentially reach 2019 levels as well, he said.

EasyJet has managed to avoid the delivery delays and aircraft shortages that have dogged narrowbody customers of Boeing Co., as well as Airbus SE operators that use Pratt & Whitney geared turbofan engines on its A320-series jets. 

“It is a difficult environment, but certainly I think we will be better off than any competitor,” Lundgren said.

Low-cost leader Ryanair Holdings Plc was forced to reduce its annual passenger forecast this year due to Boeing 737 Max delays. Another budget rival, Wizz Air Holdings Plc, has had to ground some of its A320-family planes because of issues with Pratt turbines.

EasyJet’s all-Airbus fleet is powered by engines from CFM International and hasn’t been hit by those snags. He will “wait and see” about deliveries next year, Lundgren said, adding that he expects the aviation supply chain to remain constrained for the next two to three years. 

EasyJet is currently talking with Airbus about when the carrier will receive deliveries next year. “We have no idea whether we’re going to get everything on time,” Lundgren said.

EasyJet on Monday opened its first UK base in more than a decade at Birmingham Airport.