easyJet survey reveals that holidays remain a priority for the British in 2023

A survey conducted by easyJet of 2000 UK consumers this month has shown that almost two-thirds (64%) are planning on flying abroad in 2023. Holidays topped the list of most important things people planned to spend on in 2023, with two-thirds (66%) saying this was the most important.

70% of people surveyed agreed that they will prioritise a holiday over other expenditure in their yearly budget and three quarters said it was one of their most important plans for next year. To prioritise their holiday, people will be cutting back on other discretionary spend like eating out (46%) or new clothes (40%) and on big purchases such as new cars or home improvements (33%).

Research by easyJet conducted with 2000 UK consumers in mid November 2022 showed that 64% plan to fly abroad in 2023

Protecting holiday spend remains a priority for most with three quarters saying it was one of their most important plans for next year and 70% agreed that they will prioritise a holiday over other expenditure in their yearly budget.

In order to protect their holidays next year people will book with a low-cost carrier (66%), be flying short haul instead of long haul (74%) and travel to closer-to-home destinations in Europe (70%)

Consumers are also looking at the way they travel to prioritise a holiday, with two-thirds of people saying they are more likely to book with a low-cost carrier (66%), while three-quarters of people are more likely to fly short-haul instead long haul (74%) and holiday in closer to home destinations in Europe (70%), in order to protect their holidays. The majority (80%) also believed that holidaying in the UK can be more expensive than abroad. 

Around half of respondents said they still plan to go on the same number of holidays that they usually plan for and spend the same amount, while around a quarter of people plan to go on more and spend more on holidays compared to last year. Half of Brits are planning on taking at least one holiday in 2023, while almost a third plan to take at least two.

Perhaps unsurprisingly, almost all surveyed (94%) agreed that going away on holiday is one of the most enjoyable experiences. 86% said having a holiday is a priority for them, with 57% saying this is because of the quality time it allows them to spend with friends and family and the opportunity it provides to recharge (48%), while the significant majority of people (83%) said holidays are crucial to their emotional wellbeing. 

Johan Lundgren, easyJet CEO commented:  “Travel is one of life’s greatest pleasures and we know that holidays are important to people. Not only does travelling connect friends and family but it offers a wealth of benefits, from promoting wellbeing to experiencing new cultures. This survey goes to show just what a priority it is for people, with so many determined to protect their holidays. With our low fares and unrivalled European network easyJet is ideally placed to offer a fantastic value and great quality holiday that people don’t have to compromise on. It is fantastic to see that so many consumers plan to travel next year already, and we look forward to welcoming them onboard.”

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Condor A330neo performs successful test flight

Ready for takeoff: The first of the 18 new Condor A330-900neo long-haul aircraft took off yesterday on its first test flight. At around 1:30 p.m. local time, the aircraft, which will in future be identified as D-ANRA and painted in stripes of the colour " Island," took off from Toulouse. During the test flight over the Pyrenees and the Atlantic coast, which lasted several hours, all tests were successfully completed and the aircraft landed safely back in Toulouse. The first Condor A330neo will go on route later this year, with Mauritius and the Maldives among its first destinations.

From the end of this year, the first factory-new Airbus A330neo will join the Condor fleet. This will be followed by the rollover of the entire short- and medium-haul fleet from 2024. With the 2-litre aircraft on long-haul routes and ultra-modern short- and medium-haul aircraft in the A32Xneo family, Condor is consistently focusing on state-of-the-art technology, maximum efficiency and the highest level of customer comfort and will have one of the greenest fleets in all of Europe.

Space Travel at a cost of air ticket travel is not too far away......

Space Travel at a cost of air ticket travel is not too far away: Pawan Kumar Chandana, Co-founder, Skyroot Aerospace--the Hyderabad start-up behind India's first privately designed and built rocket that was launched recently

Hyderabad is India’s Rocket City, says Pawan Chandana, at FLO session

Indian tourists travelling into space is not far away and will become reality in the next 10 years

Telugu states' contribution to Indian space technology is immense

Hyderabad is the rocket city. Most of the recently launched India’s first private rocket was entirely built in Hyderabad. The supply chain is very critical. Hyderabad is the best city in India for the supply chain for building rockets. It is also the best in the world said Pawan Kumar Chandana, Co-founder of Skyroot Aerospace--the Hyderabad start-up behind India's first privately designed and built rocket that was launched recently.

Talking to FICCI Ladies Organisation(FLO) Members at Hotel Radisson Blu in Banjara Hills on “THE METTLE AND THE MANTLE” Indian Business Growth Trajectories, he said only a few countries in the world have the capabilities of building satellites on their own. India is far ahead in space technology. And Hyderabad is becoming a hub.

The talk was organised by FLO Hyderabad. Welcoming the gatherings Shubhraa Maheshwari, Chairperson of FLO Hyderabad said ‘be a solution to the problem, nobody can stop being a unicorn’.

150 FLO members attended the session

Pawan Kumar Chandana participated and spoke along with two other startup co-founders—Alok Bansal Co-founder & Executive Vice Chairman, Policy Bazaar---a one-stop destination online for all types of insurance products and Pavan Guntupalli, Co-founder of Rapido--India's first and fastest-growing Bike taxi app with a whopping 25 Million+ app downloads.

Singapore Airlines and Tata Sons agree to merge Air India and Vistara.......

A major shake-up of the commercial airline scene in India..

Singapore Airlines (SIA) and Tata Sons (Tata) have agreed to merge Air India and Vistara, with SIA also investing INR 20,585 million (S$360 million, US$250 million) in Air India as part of the transaction. This would give SIA a 25.1% stake in an enlarged Air India group with a significant presence in all key market segments1. SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals.

SIA intends to fully fund this investment with its internal cash resources, which stood at S$17.5 billion as of 30 September 20222.

SIA and Tata have also agreed to participate in additional capital injections, if required, to fund the growth and operations of the enlarged Air India in FY2022/23 and FY2023/24. Based on SIA’s 25.1% stake post-completion, its share of any additional capital injection could be up to INR 50,200 million (S$880 million, US$615 million), payable only after the completion of the merger.

The actual amount will depend on factors including the progress of the enlarged Air India’s business plan, and its access to other funding options. SIA intends to fully fund any additional capital injections with its internal cash resources.

The merger will create India’s leading airline group

Through this transaction, SIA will reinforce its partnership with Tata and immediately acquire a strategic stake in an entity that is four to five times larger in scale compared to Vistara. The merger would bolster SIA’s presence in India, strengthen its multi-hub strategy, and allow it to continue participating directly in a large and fast-growing aviation market.

Mr Goh Choon Phong, Chief Executive Officer, Singapore Airlines, said: “Tata Sons is one of the most established and respected names in India. Our collaboration to set up Vistara in 2013 resulted in a market-leading full-service carrier, which has won many global accolades in a short time.

“With this merger, we have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market. We will work together to support Air India’s transformation programme, unlock its significant potential, and restore it to its position as a leading airline on the global stage.”

Mr Natarajan Chandrasekaran, Chairman, of Tata Sons, said: “The merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline. We are transforming Air India, with the aim of providing great customer experience, every time, for every customer. As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and on-time performance.

“We are excited with the opportunity of creating a strong Air India which would offer both full-service and low-cost services across domestic and international routes. We would like to thank Singapore Airlines for their continued partnership.”

India is the fastest-growing global economy, and is projected to become the third-largest in the world by 20273.  It is also the world’s third-largest aviation market. Demand for air travel is surging with passenger traffic expected to more than double over the next 10 years, supported by rising income levels and ongoing investments in its aviation infrastructure. However, India also remains underserved with low international seats per capita, signifying significant growth potential4 .

Jetstar Asia signs three major maintenance and services agreements with ST Engineering

Jetstar Asia has announced a new three-year line and base maintenance service agreement and a multi-year component repair service agreement with ST Engineering to support Jetstar Asia’s fleet of Airbus A320 aircraft. 

ST Engineering has been providing line and base maintenance and engineering support to Singapore-based low-cost carrier, Jetstar Asia since 2013. Moving forward, line and base maintenance will now be complemented by ST Engineering’s component repair service. 

Under the component repair services agreement, ST Engineering will provide Jetstar Asia with comprehensive repair management services through its in-house component repair and overhaul facilities and global repair network. 

Jetstar Asia’s Head of Engineering, Mr Ang Chee Keong said Jetstar Asia was delighted to renew the new line maintenance services agreement with ST Engineering and was confident the new component repair services agreement would further strengthen the long-standing relationship. 

Airlines, airports, and passengers to have their say on independent aviation regulator

The UK government has this week launched a call for evidence as part of its review of the Civil Aviation Authority (CAA), the UK’s independent aviation regulator.

Open to all interested parties, it will provide an opportunity for anybody who uses the CAA or is affected by its work – including airlines, airports, pilots and passengers – to provide insight and evidence to inform the government review, on everything from the CAA’s strategy, to its organisation and performance.

• Government launches call for evidence as part of Civil Aviation Authority review

• Public, industry and other stakeholders will have the opportunity to share feedback on performance and strategy

• Insight will be used to help ensure the provision of world-leading civil aviation regulation and public services for decades to come

Online survey here

The call for evidence will close on 22nd January 2023. It will ask questions such as whether the CAA has the right powers to effectively regulate the aviation market, whether its charges are good value for money, and whether it is effectively structured.

The wider CAA Review began in August this year and forms part of the Cabinet Office’s Public Bodies Review Programme, which aims to increase the effectiveness and efficiency of public bodies. Led by an independent reviewer, Jeremy Newman, also a member of the UK’s Competition and Markets Authority, the review will run until spring 2023.

The CAA has a number of functions, including ensuring the highest standards of aviation safety and security, the efficient use of airspace and space operations and protecting consumer rights. The review aims to help the organisation build on its success in tackling the unprecedented challenges of recent years.

The effectiveness and efficiency of the Civil Aviation Authority (CAA) - GOV.UK 

Croatia Airlines signs firm order for six A220 aircraft

Croatia Airlines, Croatia’s national flag carrier based in Zagreb, has signed a firm order for six A220-300 aircraft. Croatia Airlines plans to lease an additional nine A220s, taking its total commitment for the type to 15.

The A220s will replace previous generation aircraft in the company's fleet, reducing operating costs as well as improving environmental efficiency and competitiveness while offering passengers unrivaled comfort throughout its fleet.

Today’s signing of a contract for the purchase of state-of-the-art Airbus aircraft is a very special moment for all of us at Croatia Airlines. It marks the beginning of a new period of aviation, a new period in the life of Croatia Airlines, a new period for our passengers, and a new period for Croatia’s tourism and the economy as a whole,” said Jasmin Bajić, CEO and President of the Management Board of Croatia Airlines.

“We are thrilled to add Croatia Airlines as a new A220 customer. The A220 is ideally suited to Croatia's aviation needs, providing operational flexibility and efficiency allowing its airline to pursue its ambition for both regional and international connectivity without compromising on any aspect, be it passenger comfort or trip and seat cost economics,” said Christian Scherer, Airbus Chief Commercial Officer and Head of International.

CDB Aviation Details Executive Leadership Transition

CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Limited, announced that the Board of Directors selected Jie Chen to become the company’s new Chief Executive Officer.

Mr Chen will take the helm in early January 2023, replacing Patrick Hannigan whose retirement caps six years of leading the evolution of CDB Aviation into a globally positioned top-tier lessor. The announcement is the culmination of a planned transition that will ensure a smooth leadership changeover and lay a re-energized foundation for the lessor’s next phase of growth.

“The Board and I are thrilled that Mr. Chen has elected to take on the important role of leading the exciting next stage of the platform’s development – this is an opportune moment for CDB Aviation to drive its growth momentum with the industry recovery in full swing,” commented Madam Hong Ma, Chairperson of CDB Leasing, the lessor’s shareholder. “We are highly confident that Mr. Chen will steer the organization successfully into the future, and we look forward to providing the support and resources that the talented leaders and colleagues of CDB Aviation will require to continue their efforts.”

Deploying more than three decades of exemplary aviation industry experience, Mr. Chen’s immediate focus will be on advancing collaboration with the lessor’s airline customers, shareholder, and other stakeholders to support the industry recovery while building on the team’s strong relationships and the strength of its full-service, global platform to capitalize on emergent market opportunities.

easyJet releases results for the twelve months ending 30 September 2022

easyJet plc

Results for the twelve months ending 30 September 2022

 

easyJet achieves record bounce back delivering best ever as the carrier focuses on network allocation, improved revenue capability and financial strength.

Commenting on the results, Johan Lundgren, easyJet Chief Executive said: "easyJet has achieved a record bounce back this summer with a performance which underlines that our transformation is delivering. The summer saw easyJet achieve its highest ever earnings for a single quarter with headline EBITDAR of £674 million, ancillaries up by 59% on FY19 and easyJet holidays well on its way to its £100m target.

"easyJet does well in tough times. Legacy carriers will struggle in this high-cost environment. Consumers will protect their holidays but look for value and across its primary airport network, easyJet will be the beneficiary as customers vote with their wallets.

"Over the next year, we are targeting customer growth and are well placed to drive returns and margins while maintaining a rigorous focus on cost. With one of the strongest balance sheets in European aviation, we are ready to take opportunities as they present themselves.

"We have a clear strategy to drive returns for our shareholders and have significant confidence in our plan today and that it will deliver going forward."

-      Achieved record headline EBITDAR in Q4 of £674 million (Q4 2021: £82 million profit)

-      FY22 headline loss before tax of £178 million (Reported loss before tax of £208 million)

-      Operational performance in Q4 better than Q4 2019, with fewer on the day cancellations  

-      Financial strength - £0.7bn net debt with £3.6bn in cash and money market deposits

-      Business transformation delivering:

o  holding more slots than ever where returns are highest

o  delivering on destination base strategy - 21 aircraft now based in destination

o  enhanced ancillaries delivered 59% yield uplift vs FY19

o  easyJet holidays delivers £38 million profit before tax 

-      Q123 RPS growth expected to be >20% YoY

 

Overview

easyJet, alongside the whole industry, has faced multiple headwinds throughout the 2022 financial year from Omicron, the impact of Russia's invasion of Ukraine, and operational challenges as demand returned at scale following the widespread removal of travel restrictions across Europe. Despite this, easyJet has delivered a significantly improved performance with headline EBIT profit of £3 million (2021: £1,036 million loss) which includes incremental disruption costs of £78 million compared to FY19. The headline loss before tax in the year was £178 million (2021: £1,136 million) which includes a £64 million loss from balance sheet revaluations. 

The business transformation is delivering with easyJet achieving a record headline EBITDAR of £674 million in Q4 2022 with load factors returning to 92% and seat capacity to 26 million. Ancillary products and easyJet holidays are fully embedded and delivering incremental returns to the business.

easyJet is continuing to allocate aircraft to the markets where demand is strongest enabled by slot growth at primary airports. Over the past 12 months we have seen growth at Gatwick, Porto, Lisbon and the Greek islands. Each of these airports has delivered returns above the network average in FY22.

For winter, which is typically a loss-making period, easyJet is investing in building additional resilience. This investment allows for summer 23 preparations to start earlier in response to the tight labour market, where we have already begun our seasonal recruitment campaign. Alongside this, we now have a dedicated team in place to process employment reference checks as efficiently as possible. easyJet, like all airlines, is seeing cost pressures including fuel, strengthened US dollar and wage inflation.

Peak holiday weeks this winter, such as October half term and Christmas week in the UK, are back to normal levels of volume. Through these key periods, ticket yields are showing strength on the prior year, with the Christmas period's ticket yield currently up c. 18%. Visibility over bookings in the second half remains low, however Easter booked ticket yields are strong and booked load factors for Easter are ahead of the prior year.

easyJet goes into the 2023 financial year with one of the strongest balance sheets in European aviation. This financial strength, combined with our leading low-cost proposition at primary airports provides a key differentiator for customers, making it easy for customers to switch towards value. easyJet's historic performance in a challenging economic environment where the consumer was squeezed has been strong, as evidenced in 2008/09 during the global financial crisis when easyJet delivered increased margins¹ as well as capacity growth.

Financial Summary

-      Headline loss before tax of £178 million (2021: £1,136 million loss) 

o  Total revenue increased by 296% to £5,769 million (2021: £1,458 million) predominantly due to the increase in capacity flown and ancillary products continuing to deliver incremental revenue.

o  Group headline costs increased by 129% to £5,947 million (2021: £2,594 million), primarily due to the increase in flown capacity. 

-      Reported loss before tax of £208 million (2021: £1,036 million loss).

o  Non-headline loss of £30 million (2021: £100 million gain). Non-headline items consist primarily of losses from the sale and leaseback of aircraft and the return of slots in the year at Berlin Brandenburg airport following the right-sizing of our operations from 18 to 11 aircraft.

	2022	2021	Change favourable/(adverse)
Capacity2 (millions of seats)	81.5	28.2		189%
Passengers3 (millions)	69.7	20.4		242%
Load factor4 (%)	85.5	72.5		13ppts
Average sector length (km)	1,193	1,184		1%
Total revenue (£ million)	5,769	1,458		296%
Headline EBITDAR (£ million)	569	(551)		203%
Headline EBIT (£ million)	3	(1,036)		100%
Headline loss before tax (£ million)	(178)	(1,136)		84%
Reported loss before tax (£ million)	(208)	(1,036)		80%
Airline revenue per seat (£)	66.23	50.54		31%
Airline revenue per seat at constant currency5 (£)	67.33	50.54		33%
Airline EBITDAR cost ex fuel per seat (£)	44.09	56.62		22%
Airline EBITDAR cost ex fuel per seat at constant currency5 (£)	44.38	56.62		22%
Airline headline loss before tax per seat (£)	(2.65)	(39.87)		93%
Holidays contribution (£m)	38	(12)		417%
Headline EBITDAR Margin (%)	9.9	(37.8)		48ppts
Headline ROCE (%)	0.1	(25.5)		26ppts

Outlook

-      Based on current trading, easyJet expects the following over the 2023 financial year:

-      Q1 RPS growth expected to be up >20% YoY

-      Q1 load factor growth c.+10 ppts YoY

-      Earlier summer 23 ramp up for resilience

-      H1 fuel price up >50% YoY

-      Market wide inflationary pressure

-      H2 early bookings look positive with Easter ticket yields showing strength YoY

-      Capacity

o  H1 c.38m seats, c.25% increase YoY

o  H2 c.56m seats, c.9% increase YoY

o  Q4 capacity around pre-pandemic levels

-      easyJet holidays targeting >30% customer growth YoY

 

Fuel & FX Hedging:

Jet Fuel	H1'23	H2'23	H1'24		USD	H1'23	H2'23	H1'24
Hedged position	74%	51%	25%		Hedged position	77%	54%	27%
Average hedged rate ($/MT)	814	903	922		Average hedged rate (USD/GBP)	1.29	1.24	1.19
Current spot ($/MT) at 28.11.22	c.1,000				Current spot (USD/GBP) at 28.11.22	c.1.21

 

Carbon obligation 100% covered for CY22 at €17/MT and 77% covered for CY23 at €31/MT

USD Lease payments hedged for the next three years at 1.33

Capex hedged for the next 12 months in EUR & USD

 

Jet2 to expand at London Stansted Airport

Jet2 has confirmed this week that it will continue to expand at London Stansted Airport for Summer 23, with an extra aircraft coming into operation at the base after the company secured additional slots to support its ongoing growth. 

The addition of a 15th based aircraft enables Jet2 and Jet2holidays, the UK’s leading tour operator to the Mediterranean, to add flights and holidays to a huge number of sun-soaked destinations across the Balearics, Croatia, Greece and Turkey, giving customers and independent travel agents even more choice and flexibility.  

This expansion means that Jet2 and Jet2holidays will now operate over 225 weekly flights to 42 destinations from London Stansted Airport in Summer 23. 

With over 2.1 million seats now on sale from London Stansted Airport in Summer 23, this represents a capacity increase of more than 10% compared to Summer 22. As a result of today’s announcement, Jet2.com will increase the size of its fleet at London Stansted Airport next summer to 15 based aircraft, rising to 16 based aircraft for the peak summer holiday period. 

As a result of today’s expansion, Jet2 and Jet2holidays will increase capacity to 11 destinations, meaning customers and independent travel agents can be as flexible as they like when it comes to choosing the length of the holiday. The additional flights will operate to: 

Balearic Islands – Ibiza, Majorca 

Croatia – Dubrovnik and Split. 

Greece – Corfu, Crete (Chania), Crete (Heraklion), Kos, Kefalonia, and Rhodes. 

Turkey – Dalaman. 

As well as operating its biggest ever summer programme from London Stansted Airport in 2023, next summer will also see Jet2 and Jet2holidays operate to two brand new city break destinations from the base - Rome and Athens. 

Steve Heapy, CEO of Jet2 and Jet2holidays said: “This expansion is the latest demonstration of our continued commitment to investing in our London Stansted operations. Earlier this year we celebrated five years since the launch of flights and holidays from London Stansted, and since day one the reaction from customers and independent travel agents has been incredible. We are all set for our biggest ever Summer from London Stansted Airport, and the addition of a 15th based aircraft enables us to take even more customers away on our award-winning package holidays and flights, whilst giving them more choice than ever before.” 

Key Summer Sun facts for 2023 from London Stansted Airport include: 

42 sun and city destinations on sale (peak number of flights per week in brackets). 

Includes BRAND-NEW city break destinations – Rome and Athens  

Antalya (11), Bodrum (4), Dalaman (13), Izmir (2), Tenerife (14), Lanzarote (8), Fuerteventura (5), Gran Canaria (5), Reus (3), Alicante (7), Malaga (6), Girona (2), Palma (Majorca) (20), Ibiza (10), Menorca (8), Faro (Algarve) (11), Madeira (2), Crete (Heraklion) (10), Crete (Chania) (3), Corfu (8), Kefalonia (6), Skiathos (4), Santorini (3), Kos (7), Kalamata (1), Preveza (2), Lesvos (1), Rhodes (9), Halkidiki (2), Zante (5), Larnaca (5), Paphos (6), Rome (4), Naples (2), Sicily (1), Sardinia (1), Verona (1), Dubrovnik (5), Split (4), Malta (2), Jersey (1), Athens (2).  

Over 225 departing weekly flights during peak periods. 

A 15th based aircraft coming into operation for Summer 23.