easyJet PLC slumps to £1.2bn full-year loss after passengers halve
During the pandemic, the airline has raised £3.1bn and its net debt position is now £1.1bn
easyJet PLC () has posted an eye-watering £1.2bn full-year loss after passengers halved due to COVID-19 restrictions.
The airline only flew 48mln people in the year to September 30, compared to 96mln the period before.
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Capacity decreased by 47.5% but the load factor was 87% after flight cancellations.
Total revenue tanked 53% to £3bn, while the £1.2bn loss before tax came in after a £430mln profit a year ago.
During the pandemic, easyJet has raised £3.1bn and its net debt position is now £1.1bn.
The budget carrier expects to fly no more than 20% of planned capacity for the quarter ending in December and said it remains focused on cash generative flying over the winter season to minimise losses during the first half.
Capital expenditure for the current financial year is expected to be around £600mln but the FTSE 250 company did not provide any further guidance due to uncertainty.
The firm continues implementing its cost-cutting programme to cut a third of its workforce, which has already been completed in the UK while unions in Germany, the Netherlands and Portugal have finalised discussions.
Workers in six of the countries where it operates have agreed a two-year pay freeze and 10% of the UK crew have moved to seasonal contracts to operate in the peak months only.
To reduce fuel costs, easyJet is using shorter flight routing plans, flying slower to save fuel and reducing usage of ground power units.
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