British Airline EasyJet Warns of Severe Losses Due to Crisis
British airline EasyJet warns that the past fiscal year will close with a loss of up to 845 million pounds. This would be the first time in the history of the price fighter that a year ended with a loss. EasyJet was founded in 1995.
Society, just like peers in the industry, is hit hard by the corona crisis. Aircraft are forced to stay on the ground because too few tickets are sold.
This is partly due to travel restrictions, but consumers also have less appetite for travel due to fear of the virus. EasyJet says it will fly 25 percent of the planned capacity this year. This keeps finances under pressure.
In a trading update, easyJet reported an operating loss in the fiscal year to September this year of £ 815m to £ 845m. This means that the crisis damage is greater than the 794 million pounds that experts had expected on average.
To weather the crisis, support from the British government may be needed. EasyJet has reportedly turned to London for approval. So far easyJet has received a £ 600 million loan from the UK government.
In addition, 4,500 jobs were cut. Another £ 608 million was raised from aircraft sales. The company also raised £ 419 million from shareholders.
EasyJet will release final results on November 17.