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EasyJet plc
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=== Impact of COVID-19 and Recovery Process === During the COVID-19 pandemic, EasyJet, like many other airlines, faced significant challenges. The company reported a full-year loss of £1.3 billion, marking the first annual loss in its 25-year history. The pandemic led to a sharp decline in air travel demand, and the airline was forced to cut back on its flights. However, the announcement of positive news on COVID-19 vaccines, particularly from Pfizer and BioNTech, had a notable impact on the company's bookings. Sales surged by 50% in a week following the vaccine news. The airline responded to the reduced demand and travel restrictions by cutting around 20% of its planned winter schedule. Despite the challenges, EasyJet's CEO, Johan Lundgren, remained optimistic about the future, citing that the longer travel restrictions were in place, the more pent-up demand was building. The positive outlook was further bolstered by holiday bookings for summer 2021, which were significantly ahead of previous years, albeit driven partly by customers who had rebooked using vouchers from cancelled flights in 2020. Lundgren also acknowledged that short-haul and leisure routes, which formed the core of EasyJet's network, were expected to recover more quickly compared to long-haul and business travel. The airline aimed to open seasonal bases in Málaga and Faro for the upcoming summer season, indicating confidence in the recovery potential. While the company faced financial losses, it took measures to improve its liquidity. EasyJet raised £3.1 billion in cash between April and November 2020 through various means, including the sale and leaseback of aircraft and deferring the delivery of new planes. However, cost-cutting measures also resulted in a significant number of redundancies, affecting up to 4,500 employees.<ref>https://www.theguardian.com/business/2020/nov/17/easyjet-loss-covid-cut-flights-vaccine-bookings</ref> More recently, EasyJet indicated signs of recovery as bookings for peak periods, such as Christmas, the ski season, and other holidays, returned to pre-pandemic levels. The airline dramatically reduced its full-year loss to £178 million, showing a significant improvement from the previous year. EasyJet's CEO, Johan Lundgren, noted strong demand during peak periods and cited a survey indicating that three-quarters of people were interested in traveling next year, despite the cost-of-living crisis. The company also implemented measures to cope with rising costs, including increasing ticket prices as jet fuel and other expenses rose. Despite these increases, half of all tickets sold until the following September were expected to cost less than £50, aligning with EasyJet's reputation for offering value to customers. Destinations in the eastern Mediterranean, such as Turkey, Egypt, and Greece, were particularly popular among travellers. While the airline witnessed strong demand during peak periods, it acknowledged that stimulating demand during quieter times remained a challenge. However, EasyJet expected to fully return to 2019 capacity levels by the summer of 2023, indicating a positive outlook for the recovery. To address staff shortages and avoid travel disruptions, EasyJet began early recruitment for the next summer season and received a remarkable response with 19,000 applications for 2,000 jobs. The company also engaged in conversations with contractors and the government to ensure labour availability for the aviation sector. In summary, EasyJet faced substantial losses due to the COVID-19 pandemic, but the news of effective vaccines resulted in a surge in bookings. The airline implemented various measures to manage its finances, including raising cash and reducing costs. With bookings for peak periods returning to pre-pandemic levels and an optimistic outlook for the next summer season, EasyJet appears to be on a path of recovery, although challenges related to stimulating demand during quieter times and managing rising costs persist.<ref>https://www.theguardian.com/business/2022/nov/29/easyjet-bookings-covid-losses-tickets</ref> '''Sustainability''' Aviation accounts for 2.5% of global CO2 emissions according to a report by 'Our World In Data' (2020). Planes emit CO2 from burning fuels. On top of CO2, aircraft engines emit other gases – nitrous oxides (NOx), sulfur dioxide (SO2) and water (H2O) – and particulate matter (soot). When emitted at high altitudes, these emissions affect atmospheric physical and chemical properties (source-Transport and Environment). If looked at distance/consumption, the most fuel is consumed during take-off and climbing. Also the higher the flight range, the higher the share of fuel consumed while cruising. EasyJet's main focus is on short-haul flights (low range), which might lead to lower fuel consumption while cruising. However, due to frequent takeoffs and landings on short-haul routes, the distance/consumption ratio is affected as these phases significantly contribute to fuel usage. Sustainability in aviation could be achieved through improvements in aircraft and engine efficiency, the use of sustainable aviation fuels, more efficient operations and airspace, the use of robust carbon offsets and investment in innovative carbon removal solutions could address the residual, according to a report by Sustainable Aviation. easyJet plans to achieve sustainability through the combination of six drivers: fleet renewal, operational efficiencies, airspace modernisation, sustainable aviation fuel (SAF), zero carbon emission aircraft and carbon removal technology. easyJet has 168 A320neo family aircraft in its orderbook. This more efficient Airbus NEO aircraft will reduce fuel burn, carbon emissions and related operating costs. They will also use Sustainable Aviation Fuel (SAF) in line with their net zero roadmap and have signed a long-term agreement with their main fuel supplier: Q8Aviation for the next 5 years. Currently SAFs are known to be more expensive than traditional jet fuel, so it carries the burden of affecting operating profits. Nonetheless these sustainability initiatives carries the potential of becoming key differentiator in the long term.
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