easyJet Sees Higher-Than-Expected Costs in 2H

easyJet Sees Higher-Than-Expected Costs in 2H

easyJet PLC warned Monday that its operating costs will be higher than expected in the second half of the year, reflecting additional leased aircraft, crew costs and airport charges.

The U.K. airline said that it will exceed the previously provided cost per available seat kilometer, or CASK, guidance. easyJet had said at its first-half results that its operating CASK for the second half ending Sept. 30 would be close to fiscal 2019 levels.

In addition, the company forecast its third-quarter capacity at around 87% of fiscal 2019 levels, and fourth quarter capacity at 90%.

“While in recent weeks the action we have taken to build in further resilience has seen us continue to operate up to 1,700 flights and carry up to a quarter of a million customers a day, the ongoing challenging operating environment has unfortunately continued to have an impact which has resulted in cancellations,” Chief Executive Johan Lundgren said.

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