EasyJet re-deploys fleet from Israel to summer hotspots

EasyJet Plc will shift its aircraft fleet previously used on flights to Israel to popular summer destinations after the Middle-East conflict forced the budget carrier to suspend the service.

The low-cost carrier has redistributed its capacity this summer to places like Mallorca and Malaga, it said on Thursday. EasyJet has suspended all flights to and from Tel Aviv for the remainder of the summer season through Oct. 27, and the fallout from the regional conflict has led to a direct impact of £40 million ($49.9 million) in the first half of the company’s fiscal year.

The discounter has taken a more cautious approach than carriers such as Wizz Air Holdings Plc and Deutsche Lufthansa AG, which continue to fly to Israel. Many airlines across the world stopped services or circumnavigated some Middle East destinations while Jordan, Lebanon, and Iraq temporarily closed their airspace following Iran’s attack on Israel last weekend.

Chief Executive Officer Johan Lundgren called the move a response to an “evolving situation,” saying the conflict had not impacted bookings to nearby countries including Egypt and Turkey.

Lundgren was speaking after the company released a trading update. EasyJet said it reduced its winter losses by more than £50 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.

Summer bookings are showing signs of healthy demand and prices have increased compared with the same period last year, with average fares in the first half hitting £65. Lundgren said the fare increase was equal to “a couple of coffees on the high street” and prices were still “very low,” while passengers were buying more of EasyJet’s ancillary products.

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 as much as 5.6% to 547 pence in London trading. The stock has gained 4.2% this year, while Ryanair is up 10% in the period.