EasyJet plc (LSE:EZJ) has joined the chorus of travel companies saying they are preparing for a surge in demand from Britons for holidays abroad as Covid travel restrictions are eased.
Two-thirds of Brits say an overseas holiday is a top priority this year, according to recent polls, with the low-cost carrier expecting the ending of all Covid tests for double-vaccinated passengers from 11 February to be the catalyst for a rush for seats.
The easing of restrictions in other European countries, including France, should provide an additional boost
Easyjet will provide more flights than ever before from the UK to beach destinations this summer, it said in a trading update.
The airline flew around 50% of the number of 2019 flights in January but expects to be back at pre-pandemic levels by the end of this financial year.
“We believe testing for travel across our network should soon become a thing of the past,” Johan Lundgren, chief executive, said.
“We see a strong summer ahead, with pent-up demand that will see easyJet returning to near 2019 levels of capacity with UK beach and leisure routes performing particularly well.”
Rival low-budget airlines Ryanair Holdings PLC (LSE:RYA) and Wizz Air Holdings PLC (AIM:WIZZ) have said this month that they will add capacity to meet what they expect with a surge in people wanting to get away from the UK.
Wizz Air has bought new slots at Gatwick, which it anticipates will be the centre of a battle for passengers among budget carriers.
Easyjet halved losses in the quarter to Christmas to £213mln as revenue soared over 200% to £805mln compared with the comparative 2020 period.
Shares in the airline have been battered since the onset of the pandemic but after flirting with a new five-year low in November have bounced 27% to stand at 637p on Thursday afternoon.
Other airlines have followed a similar pattern. British Airways owner International Consolidated Airlines Group (LSE:IAG) is 27% since December with Wizz Air Holdings PLC (AIM:WIZZ) up 13% while Jet2 PLC (AIM:JET2) has been the best performer with a 38% rise.