Europe’s second low-cost airline markets nine million seats in Europe at low fares to try to revive demand
EasyJet, the second low-cost airline in Europe, behind Ryanair, is advancing its marketing campaign for the winter season 2020-21. When the effects that the coronavirus crisis will have on aviation are not yet known and while companies insist on asking massive aid to the States and their shareholders to guarantee their short-term survival, the British company seeks to sell tickets and advance income with the than to strengthen its cash position.
Liquidity is precisely the main element in which analysts influence to determine the endurance that an airline can have. EasyJet explained last Monday that it has 2,200 million available euros, which is the sum of 1,600 million pounds (1,750 million euros) in cash and 500 million dollars (450 million dollars) in undrawn lines of credit.
Europe’s top five airlines totaled last week more than 25,000 million euros of liquidity to withstand the collapse in demand.
In the absence of public aid and while almost all flights in Europe are canceled (which reduces variable costs), 75% of airlines it doesn’t have enough reserves to last three months, so the situation has become desperate in most companies in the sector, which are announcing temporary restructuring of their templates (ERTE).
In this context, EasyJet has announced today that it has put up for sale nine million places between October 25 and February 28, 2021 in a promotion at 39.6 euros per ticket that will end on March 24. Specifically, there are 147,000 flights across Europe, with nine million seats. In addition, it will not charge for the exemption of the rate change, with exceptions. Last year he had started selling his seats for the following winter in the second half of April.