EasyJet has referred to as on the British authorities to urgently present airways with a bespoke bundle of assist measures, warning that aviation is dealing with probably the most extreme menace in its historical past.
The airline stated it expects to report a full-year loss for the primary time in its historical past, forecasting a pre-tax lack of between £815m and £845m for the final 12 months.
EasyJet stated it carried over 9 million passengers between July and September, equal to 38% of capability deliberate earlier than the pandemic. It burned by way of virtually £700m in money throughout that interval.
The low-cost provider stated it’s specializing in worthwhile flying in the course of the winter season, working only a quarter of its common schedule between October and the top of the 12 months, as a way to minimise its losses and money burn.
EasyJet stated it had raised greater than £2.4bn in money because the begin of the pandemic, together with a £600m loan from the Treasury and Financial institution of England’s emergency coronavirus fund which it secured in April with its fleet grounded.
EasyJet has described itself as well-positioned to climate the present atmosphere and for its enterprise to get better as soon as authorities journey restrictions are eased.
Nevertheless, the provider has signalled it could want additional monetary assist from the state if flying continues to be disrupted by coronavirus, as first reported by Sky Information.
The airline stated it continues to evaluation its liquidity place frequently and would “proceed to evaluate additional funding alternatives, together with sale and lease backs, ought to the necessity come up”.
Johan Lundgren, easyJet’s chief govt, stated the corporate had taken decisive motion to minimise its losses, scale back money burn and increase its liquidity to face the challenges introduced to aviation by the pandemic.
“Firstly of this 12 months, nobody may have imagined the affect the pandemic has had on the business,” Lundgren stated.
“EasyJet got here into this disaster in a really sturdy place because of its sturdy stability sheet and constant profitability. This 12 months would be the first time in its historical past that easyJet has ever made a full-year loss”.
EasyJet is within the midst of a restructuring programme, with plans to chop as much as 30% of its workforce and close some of its UK bases together with at Stansted, Southend and Newcastle airports.
It has beforehand referred to as on authorities to assist airways with measures such because the removing of air passenger obligation for a minimum of 12 months.