Does easyJet have an aircraft utilisation problem?

Seasonality, the Achilles' heel of European LCCs

EasyJet has been in the news recently with two private equity firms in a bidding war to potentially acquire the UK based low cost carrier. EasyJet aren’t in any financial trouble but their performance in recent years is best described as anaemic, leading to a relatively low stock market valuation, generating a lot of debate and speculation regarding easyJet’s challenges and prospects.

The question has become: what’s wrong with easyJet? In our opinion there’s nothing wrong with easyJet, rather they’ve pursued a very conservative strategy while the market is demanding growth.

One critique surrounds aircraft utilisation, arguing that significant seasonality in European travel leads to poor aircraft utilisation. This argument has been promoted by ACMI operators who suggest that better use of wet leasing during seasonal peaks would benefit easyJet. There’s an inherent conflict of interest in their argument, so let’s consider this from a neutral and data driven perspective.

Is easyJet’s aircraft utilisation poor?

Very conveniently, the UK CAA publishes detailed data on fleet level aircraft utilisation, allowing examination of utilisation by airline, by fleet type and month. The database only includes aircraft on the UK aircraft register which adds a layer of complexity for airlines like easyJet with AOCs in multiple countries. Thus, the UK data only covers the easyJet fleet registered on their UK AOC, and not those on their Austrian and Swiss AOCs. The seperate AOCs are an artefact the European Common Aviation Area which the UK left in 2020, and which Switzerland was never a member of.