EasyJet warns of £800m loss

EasyJet faces losses of more than £800m this year as it was expecting to fly at just 25 per cent capacity into next year because of the Covid-19 pandemic.

 The annual loss will be the first in EasyJet’s 25-year history.

Johan Lundgren EasyJet CEO said: “Aviation continues to face the most severe threat in history and the UK government urgently needs to step up with a bespoke package measures to ensure airlines are able to support economic recovery when it comes.”

The hope of rapid recovery after the lockdown vanished after the government introduced quarantine restrictions on arrivals from abroad. EasyJet shored up finances by taking loans, selling, and leasing back part of its fleet cost-cutting deals with its staff.

The carrier has already taken a $600m loan from the government, cut 4, 500 jobs raised £608m from selling aircraft, and tapped shareholders for £419and continue to review its liquidity position on a regular basis and will assess further funding opportunities.

“Holidaymakers are booking at a very late stage and demand for destinations is shifting rapidly due to ever-changing quarantine rules, EasyJet added.

The carrier grounded its entire fleet on 30 March as Britain went into lockdown before returning to the skies with only a skeleton schedule in the middle of June.

The airline will formally report its annual results for the year ending September on 17 November.