Europe Travel Is Likely To Wait for More As Easyjet Suffers Financial Losses
Ever since the world was attacked by the COVID-19 pandemic, the airlines across the world have been extremely affected and resulting in various travel restrictions and lockdowns. Due to this, the travelers in Europe are now going to face more limited flight options this winter because of the first full-year financial losses suffered by EasyJet in its history.
This Esyjet’s restricted flight schedule will have a large impact on European travel. On November 17, unprecedented year-to-date losses of USD 1.7 Billion was reported by the company along with the decreased travelers’ numbers by half in comparison to the last year, at just 48.1 million. There is no doubt that the COVID-19 pandemic has been massively troublesome for the airlines, which presented a profit of USD 570 million in 2019, now has ended up with plenty of economizing initiatives that will have a great impact over the coming months.
There are several airlines with even worse conditions than easyJet including Virgin Atlantic, Flybe, South African Airways, and LATAM. Apart from this, it has been stated by easyJet to operate only 20% of its typical flight capacity in the first quarter of 2021 resulting in the decreased accessibility of flights in Europe over the coming winters. Plus, the company has already announced its planning to cut its flight timetable to only 20% of the limit with regards to the rest of 2020 due to the fresh lockdowns introduced across Europe in Autumn. As soon as the flights by easyJet are eased, you can also take the advantages of private airport transfer services for safe, premium and hygienic transfer.
The news is likely to upset many travelers looking for a skiing holiday or some winter sun in Europe after the ease in lockdown measures, critically putting a limit on traveler’s choices with regards to the flight times and destinations. As one of the region’s biggest airlines, the restriction on easyJet's flight availability will have an extreme impact on international travelers this winter.
Over the longer term, easyJet’s capacity to boost its flight schedule will be completely arrested by other cost-cutting initiatives the company has been compelled to take due to the corona outbreak. In regards to this, the international travelers flying into other countries are likely to wait for the chauffeured services till the ease of the flight restrictions by easyJet. In May, it was announced by the airlines to decrease its labor force by around 30% - the equivalent of 4,500 employment losses and also hopes to reduce its airplane fleet by 53 planes. These initiatives are sufficient enough to confine the company’s operating capacity and make it more complex to increase flight offerings once there is an increase in demand.
In addition to this, it is not clear whether the company is going to continue its low-cost flight model in this new era of more confined global travel or it will be required to increase prices for consumers to attempt to balance the extreme financial losses faced this year.
Airline Industry Is Ruined By The Pandemic
Airlines have been suffering from the double threats of health risks and serious economic downfall - both of them can directly affect people’s choices of flying. Meanwhile, around 65% of the worldwide plane fleet has been stored by April this year. This extreme disturbance can lead global travelers to less freedom of choice in international traveling for a couple of months to come.
Vaccine Updates Can Provide Some Relief
The extreme effect on the worldwide airline industry is likely to get eased somewhat by the news that two suitable vaccines with high efficacy rates are now in the last phases of development. These vaccines are likely to provide some hope towards the end of the corona outbreak and global travel may return to its normal stage next year.
The vaccine can ease the struggle of international travelers willing to enjoy overseas vacation again while airlines are expecting the confined demand can result in extreme bookings for summer 2021 when the turn out of the vaccines is expected to be well in progress. It is stated by EasyJet’s Chief Executive, Johan Lundgren that he hopes short-haul and leisure travel to be recovered quickly but the overseas travel is probably not to return to levels experienced before the COVID-19 until 2023.
This lightens the fact that the travelers are required to be patient for some time before the overseas travel completely returns to its normal phase. In the meantime, they can consider restricted choices in flights and for the travel precautions to include new initiatives, for example, obligatory vaccination certificates, airport health screenings, and testing and quarantine periods.
Source
https://www.traveloffpath.com/less-flight-options-in-europe-as-easyjet-suffers-financial-losses/