EasyJet slumps to first ever full-year loss in 25-year history due to coronavirus


EASYJET has slumped to the first ever full-year loss in its 25-year history as the coronavirus crisis sent it nosediving into the red by £1.27billion.

The loss comes after its passenger numbers halved to 48.1million, down from 96.1million, in a year as the pandemic crippled the travel industry.

EasyJet has slumped to the first ever full-year loss in its 25-year history

EasyJet said it now expects to fly no more than around 20% of planned services in the first quarter of its year to next September.

It comes as a relentless second wave of the pandemic batters demand, with people in England currently also banned from travelling abroad.

EasyJet’s pre-tax loss for the year to September 30 compare with profits of £430million the previous year.

On an underlying basis, easyJet reported pre-tax losses of £835million against profits of £427million the previous year, which was in line with expectations.

Johan Lundgren, easyJet chief executive, said the group had responded “robustly and decisively” to the crisis and cheered “welcome news” on a possible Covid-19 vaccine.

He said: “While we expect to fly no more than 20% of planned capacity for the first quarter of 2021, maintaining our disciplined approach to cash generative flying over the winter, we retain the flexibility to rapidly ramp up when demand returns.

“We know our customers want to fly with us and underlying demand is strong.”

He added the group expected to “bounce back strongly”.

The financial results come after a union official claimed in September that EasyJet was “hanging by a thread”.

In May, EasyJet announced plans to cut up to 4,500 jobs as part of a reduction of its workforce by as much as 30%.

Other major airlines have also been forced to slash jobs following the pandemic, with British Airways cutting 12,000 roles.

Meanwhile, Ryanair has warned up to 3,250 jobs could be slashed.

And Virgin Atlantic has previously said it’ll make 4,150 members of staff redundant in an attempt to stay afloat.