Why did easyjet shares fall today?

EasyJet is cutting more flights in an attempt to avoid a repeat of the travel chaos suffered by passengers in recent months.

The company has announced it is reducing capacity until the end of September, after flight caps were announced at London Gatwick and Amsterdam Schiphol.

The airline is “proactively consolidating” a number of flights across affected airports. This will give customers advance notice and the potential to rebook onto alternative flights, it says.

EasyJet points to problems such as air traffic control delays and staff shortages in ground handling and at airports, shortages of staff including cabin crew, and delays getting IDs approved so new hires can start.

These problems have prompted flight caps at Gatwick and Schiphol in the last few days.

EasyJet says it expects to rebook the majority of customers on alternative flights, with “many” being on the same day as originally booked for.

The cuts mean EasyJet will run at around 90% of its pre-pandemic flights (2019) in July to September, down from a previous target of 97% of pre-Covid flights.

Capacity in April-June will be around 87% of pre-Covid levels, below the 90% previously expected.

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