How UK budget airlines are bouncing back post-pandemic
In 2021, the aviation industry faced unprecedented challenges as air travel in and out of the UK plummeted by 71%. Domestic flights saw a decline of nearly 60%, while international travel struggled to regain momentum due to stringent testing and quarantine measures imposed amid the pandemic.
Despite these setbacks, budget carriers like Ryanair and easyJet persevered, with Ryanair retaining its position as the largest airline in the UK, operating over 100,000 flights, followed closely by easyJet with more than 82,000 flights. Now that the world has emerged from the pandemic, UK budget airlines continue to show resilience, having adapted strategies to bounce back stronger than ever.
Challenges of bouncing back
Retaining operations during the pandemic presented a myriad of challenges for the aviation industry. Despite efforts to employ historical data, industry trends, and expert opinions, accurately forecasting demand remains elusive. Uncertainties surrounding travel restrictions, coupled with a mass exodus of workers during the pandemic, found many airlines ill-prepared for the sudden uptick in passenger traffic in 2022. As a result, airlines and airports grappled with logistical challenges and operational disruptions, many of which continue to impact their profits today in post-pandemic times.
Success amidst challenges
Amid tumultuous periods, budget airlines have demonstrated resilience and adaptability, maintaining stellar operations. Europe’s largest budget carrier, Ryanair, stands out for its proactive measures taken to mitigate disruptions. The airline hedged more than 80% of its fuel, ensuring stability amid volatile fuel prices. Additionally, Ryanair kept its airline fully staffed to operate its summer 2022 schedule, distinguishing itself from competitors who frequently cancelled flights due to severe staff shortages.
Meanwhile, easyJet seized the pandemic as an opportunity to reinforce its brand presence. The budget airline capitalised on changing travel preferences by introducing month-long, all-inclusive holiday packages in 2022 and 2023, touted as more affordable than domestic stays. Leveraging its reputation for affordability, easyJet continues to attract customers with its cheap flights and sales. Encouraging flexibility and adventure among its consumers, the airline has also wisely optimised its online presence to make navigation easier for would-be passengers. Case in point, guests can use the airline’s low fare finder to find dates for better flight deals, whether it’s to popular destinations like Bordeaux in France or less-known locations like Tivat in Montenegro.
This success has enabled easyJet to roll out significant expansions, including the opening of its first new UK base in 12 years at Birmingham Airport in March 2024. This is expected to add more than 50% additional flights each week, thereby reducing fares for loyal consumers. In the same month, Ryanair announced its largest-ever summer flight schedule in Alicante. This expansion features a total of 89 routes, including nine new destinations from Barcelona, Budapest, Cardiff, Lisbon, Norwich, Osnabruck, Rzeszow, Sofia, and Zagreb. To accommodate this expansion, Ryanair will make an additional investment of nearly £238 million to base three new aircraft in Alicante — bringing the total to 16 by the summer of 2024 — and generate more than 90 new high-paying jobs for pilots and cabin crew.
UK budget airlines have shown remarkable resilience and adaptability in bouncing back from the challenges posed by the pandemic. Hence, as the aviation industry continues to recover, budget airlines are well-positioned to capitalise on the growing demand for affordable travel options and play a significant role in shaping the future of air travel in the UK. For more business news, check out our other articles on Business Money.
