EasyJet Presses Airports For Efficiency

Dave Stroud, ASM; Andrew Macmillan, Manchester Airports Group; Agi Smith, easyJet; Satyaki Raghunath, independent advisor

From left, Dave Stroud, ASM; Andrew Macmillan, Manchester Airports Group; Agi Smith, easyJet; and Satyaki Raghunath, independent advisor.

Credit: David Casey/Aviation Week Network

As European airports grapple with rising congestion and aging infrastructure, easyJet says operators must adapt more quickly to support high-density, fast-turn operations.

Speaking at GAD World in Lisbon, Director of Airport Development Agi Smith said airports need to “work with us and listen to us” as the LCC transitions to larger aircraft and tighter schedules.

“This is a very high-volume, very low-margin business,” she told delegates. Smith explained that easyJet handles more than 100 million passengers per year, but the margin per passenger is about £6.30 ($8.40). “It’s very small margins … and it’s very critical how we grow, where we grow, where we develop,” she added.

Smith said easyJet is now allocating capacity for summer 2027, using an 18-month planning cycle that evaluates profitability at every base. “If we see that profitability is not there, we do as well consider reallocation,” she said. The airline’s ability to move aircraft gives it leverage in commercial negotiations, but she stressed that growth requires true cost efficiency, not just lower airport charges.

“What are those gains that we can generate? And how do we invest in technology that we do actually need and use, that actually generates those efficiencies?” Smith said. Investments, she added, must “only be justified that you actually generate savings from it. Because other than that, why would we pay more for something that doesn't generate any effects?”

Smith said easyJet has been working to improve turnaround times over the past 12 months and has managed to knock an average of 4 min. off. “That meant that we cancelled 1.8% less flights, and we were able to carry 300,000 more customers in that year,” she added.

“We want to remove another 2 min. off the time … so we all need to work together to drive those efficiencies.”

Airport operators agreed that aligning on efficiency is essential. Andrew Macmillan, chief strategy officer at Manchester Airports Group, said the most productive partnerships require both parties to focus on shared value.

“If we provide capacity efficiently, and operate efficiently, and you can use the capacity efficiently … then you can bring money, and that de-risks the huge investments we've got to make over time,” he said.

Macmillan argued that commercial cooperation is preferable to regulatory intervention. “Maybe there's a slight nervousness about a transparent and robust commercial conversation, but I'll tell you what's a lot better than having a regulator tell you how to do it.”

David Casey

David Casey is Editor in Chief of Routes, the global route development community's trusted source for news and information.