EasyJet will remove 700,000 seats from its winter flight schedule amid soaring fuel prices, Chief Executive Kenton Jarvis announced. The budget carrier is scaling back capacity over the quieter months to avoid paying higher sums for fuel, which has risen sharply since the Iran conflict led to the closure of the Strait of Hormuz. Earlier this summer, the airline cut about 700,000 winter seats.
Jarvis stated the airline would now remove between 600,000 and 700,000 additional seats, equivalent to roughly two days of flying. The airline typically offers about 50 million seats during the winter season running from October to the end of March. "People are taking capacity out, we see that across all competitors," Jarvis told the Financial Times, adding this was "no surprise" given fuel costs. "I honestly think it's been quite a surprise for the industry that fuel has stayed as high as it is." Jet fuel costs roughly doubled after the Iran conflict began. Though prices have started to fall, they remain far higher than expected.
By reducing capacity, EasyJet aims to lower its use of more expensive fuel. This follows Ryanair's announcement to cancel some Tuesday, Wednesday, and quieter weekend services to save money. Ryanair's Michael O'Leary warned higher fuel costs may continue for another 18 months due to elevated prices and lower hedging rates.
The International Air Transport Association has warned rising fuel costs could cost the sector an extra $100 billion this year. Several carriers have faced bankruptcy, including Spirit in the US and Air Baltic in Europe. Bosses warn higher costs come as airlines face additional burdens from environmental rules, including a proposed extension of the EU's emissions trading system and a rise in the need for sustainable aviation fuel. "There's real pain for passengers next year because of higher oil prices and at the same time, Europe is extending ETS," O'Leary said.
Source: Financial Times Companies · Summarized by HeadlinesBriefing