Easyjet will suffer the first loss in its history

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EasyJet will suffer the first loss in its history


Heavily affected by the pandemic, the British company forecasts a pre-tax loss of between 815 and 845 million pounds for the 2019-2020 fiscal year. The number of passengers fell by 50%.


The carrier, founded in 1995, suffered above all from the stoppage of its flights in the spring due to lockdowns and travel restrictions in Europe.


© KEYSTONE/archive
The carrier, founded in 1995, suffered above all from the stoppage of its flights in the spring due to lockdowns and travel restrictions in Europe.


The British airline Easyjet announced Thursday forecast a pre-tax loss of between 815 and 845 million pounds for the 2019-2020 financial year ended at the end of September, due to air traffic hit hard by the health crisis.

“This year, it will be the first time in its history that Easyjet will realize a loss”, regrets Johan Lundgren, general manager of the company, quoted in a press release.

The number of passengers carried fell 50% to 48 million for the year.

The carrier, founded in 1995, suffered above all from the stoppage of its flights in the spring due to lockdowns and travel restrictions in Europe, which cost it dearly.

It then resumed its flights since June 15, but with reduced capacities, equivalent to 38% of what was planned for the summer period from July to September, ie the fourth quarter of its fiscal year.

Easyjet also specifies that it forecasts for this last quarter a loss before taxes between 295 and 325 million pounds (350 to 385 million francs), which should be lower than that of the third quarter. Johan Lundgren is very cautious for the next few months.

A third of the workforce eliminated

Easyjet will only run at 25% of its planned capacity between October and December, i.e. the first quarter of its 2020-2021 fiscal year, due to the quarantines imposed by the United Kingdom on several countries, such as France and Spain , and as Europe seeks to stem the resurgence of the virus.

“The airline industry continues to face the most serious threat in its history and the British government must urgently intervene with a set of dedicated measures so that the airlines can help the economic recovery”, underlines the leader.

The company notes, however, that the first reservations for the summer of 2021 are at the level of those observed in previous years.

Strengthened finances

To survive this crisis, Easyjet has considerably strengthened its finances in recent months. For example, he raised £ 419 million through an issue of new shares and obtained a £ 600 million loan from the UK government.

Like its competitors, the group had already announced up to 4,500 job cuts, or nearly a third of its workforce.

Easyjet explains Thursday that it has successfully completed consultations with its staff in the United Kingdom, which should help avoid redundancies.

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