4 quotes that sum up... the airlines' outlook for summer

This week several airlines released their company results. What does capacity look like for the rest of summer and how does it compare to pre-pandemic? Here’s our summary from Ryanair, easyJet, Wizz Air and IAG.

Transcript

1. quotes that sum up... 4 ...the airlines' outlook for summer
2. “While there are clear signs of pent-up demand, bookings remain closer-in than was the norm (pre-Covid) at this time of year. At this time, Q2 average fares are tracking ahead of peak S.19 [summer 19] (pre-Covid) levels by a low double-digit percentage. Ryanair plans to grow FY23 traffic to 165m (+11% on pre-Covid traffic) and will pursue its load active, yield passive strategy to achieve this growth.” Michael O’Leary, CEO, Ryanair Source: Ryanair Q1 results FY23
3. “easyJet currently expects capacity in Q4 to be c.90% of Q4’19 with load factors above 90%. easyJet’s Q4 schedule is now 71% booked, 1ppt ahead of this point in FY19. Q4 sold ticket yield is currently 13% above FY19. easyJet is seeing yields track positively through the first half of FY23, with October half-term currently booked in line with FY19 on capacity at 95% of FY19 levels.” Source: easyJet Trading update for three months ended 30 June 2022 (Q3) Johan Lundgren, CEO, easyJet
4. “By now we have the largest part of the summer ramp-up behind us and expect to operate around 30% higher ASKs [Available Seat Kilometre] in the summer compared to pre-pandemic levels. We expect continued month-on-month momentum in net total fares and loads through the summer. We are encouragingly starting to see normalization of operational disruption levels as we have lowered utilization by circa 5% for the summer versus F20.” József Váradi, Chief Executive, Wizz Air Source: Wizz Air Q1 F23 Results - July 2022
5. Luis Gallego, Chief Executive Officer, IAG “Premium leisure remains strong while business travel continues a steady recovery. European shorthaul remains strong at c.80% bookings and revenue c.100% over last 5 weeks. Longhaul continues to lag partly due to most of Asia still closed but has increased to c.80% for bookings and c.90% for revenue. North Atlantic bookings at c.95% and revenue c.100% over last 5 weeks.” Source: IAG Q2 2022 Financial Results
6. Passengers flown vs Apr-Jun 2019 +9% -17% +17% -28% -10% +30% -26% 5% (+2pts) +15% 22% (+2pts) Not provided Not provided Summer 2022 capacity vs 2019 UK Market share (growth) Ryanair and Wizz Air have increased summer capacity compared to pre-pandemic levels. Sources: easyJet Trading update for three months ended 30 June 2022 (Q3), Ryanair Q1 results, Wizz Air Q1 F23 Results, IAG Q2 2022 Financial Results