Reuters
- British airline easyJet said Thursday it may have lost up to $1.1 billion in the year to September 30 — its first-ever full-year loss.
- The airline forecasted headline losses before tax for the year of between £815 million and £845 million ($1.06 billion and $1.1 billion).
- The budget carrier said it expected to operate at around 25% of operational capacity in the first few months of 2021.
- EasyJet scrapped its dividend.
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British airline easyJet warned on Thursday it may have lost up to £845 million ($1.1 billion) in the year to October — it’s first-ever full-year loss.
The budget airline has scrapped its dividend amid the carnage caused by the coronavirus pandemic, it said in a trading update.
Based on current travel restrictions, easyJet said it expected to fly at around 25% of planned capacity for the first quarter of 2021.
The UK company forecast a headline loss before tax for the year to September 30 of between £815 million and £845 million ($1.06 billion and $1.1 billion), exceeding a £794 million ($1.03 billion) loss expected by analysts.
The airline’s CEO Johan Lundgren called for a “bespoke package of measures” to support the industry from the UK government. “Aviation continues to face the most severe threat in its history and the UK Government urgently needs to step up,” he said.
Sky News reported Thursday that easyJet had warned the government it may need more state aid. The airline has already secured a £600 million ($778 million) loan from the COVID Corporate Financing Facility (CCFF), issued by the Bank of England and the HM Treasury.
Despite the losses, easyJet said it is "well-positioned to weather" the ongoing pandemic and stage a recovery once the government eases travel restrictions.
"We will cover the majority of our pre-existing network with reduced frequency, taking advantage of the European slot waiver mechanism put in place for this winter to best match our capacity against the lower demand that currently exists," easyJet said.
It would continue to regularly "review its liquidity position" and assess whether further funding is necessary, it said. It has already raised £2.4 billion in cash since the start of COVID-19.
With every major country placed under widespread lockdowns in March, the aviation industry has been severely affected. A number of European countries such as the Netherlands, the UK, and Spain are seeing a resurgence in cases and instigating local lockdowns in some areas.
EasyJet, which normally operates on over 1,100 routes across more than 35 countries, said in May it would slash 4,500 jobs — roughly 30% of its workforce — due to the pandemic. The company later said it doesn't expect demand for flying to return to 2019 levels before 2023.
The results came after Manchester Airports Group, which owns airports in Manchester as well as London Stansted airport, warned this week it could cut more than 800 jobs. Monthly demand is 75% below usual levels, it said.
EasyJet will report formal annual results on November 17.
Shares in easyJet were down around 2% at £514 ($666) on Thursday morning.