CEO says his airline's all-Airbus fleet is a 'better alternative' as rivals struggle with Boeing blues and engine issues
Joan Valls/Urbanandsport/NurPhoto via Getty Images
- European budget airline giant easyJet reported a record-breaking summer for profits on Wednesday.
- Its CEO told Bloomberg it benefited from engine choices and an all-Airbus fleet.
- Boeing delays have hampered rival Ryanair, while Wizz has grounded planes for engine inspections.
The boss of easyJet said avoiding problems at Boeing and Pratt & Whitney has helped it achieve record profits, and buck the trend among Europe's low-cost carriers.
CEO Johan Lundgren spoke to Bloomberg TV on Wednesday as easyJet reported blockbuster earnings.
The European budget airline reported a record-breaking summer, with pre-tax profit up by one-third since last year to £610 million ($768.35 million).
Meanwhile, profits fell at its biggest rivals, Ryanair and Wizz Air.
"I think that in all fairness, all the manufacturers, whether that is Airbus or Boeing, are struggling with their supply chains as well," Lundgren told Bloomberg TV.
"To the extent that the engine choices that we've made and also then going with Airbus, it's a better alternative than some of our competitors are having," he added.
Ryanair, Europe's largest airline, reported third-quarter profits down 18% compared to last year. It operates a fleet made up entirely of the Boeing 737.
In its earnings report, Ryanair criticized Boeing, saying delays to new planes meant it had to rely on savings from fuel hedging.
The planemaker reduced its output of 737 Max jets amid a seven-week strike and increased regulatory scrutiny following January's Alaska Airlines blowout.
Both easyJet and Wizz Air have all-Airbus fleets but use different engines.
Earlier this month, Wizz reported its half-year net profit was down 21.3% to 315.2 million euros ($331.4 million).
The Hungarian budget airline said it had 41 planes grounded for engine inspections.
Wizz uses engines from Pratt & Whitney which last year announced 1,200 engines would need to be removed for inspections. It said a "rare condition" contaminated the powder metal and could cause cracks to form on critical engine parts.
The engine type is a popular choice for the short-haul Airbus A320 family. While easyJet uses the same planes, it instead fits engines made by CFM.
EasyJet didn't completely escape supply-chain problems, however. This year, restraints on raw materials and skilled labor have hampered the aviation industry.
Lundgren told Bloomberg TV the airline had 16 deliveries this financial year rather than the 19 it expected.
"But we're managing the growth trajectory anyway, and we can allocate those within the network to make sure we have the capacity where the demand really is," he added.