By Sarah Young
LONDON (Reuters) – British airline easyJet warned on Thursday its first ever annual loss could be as much as 845 million pounds ($1.1 billion) as the pandemic meant it was flying just 25% of planned capacity.
The airline has signalled to the government it may need more financial support, according to media reports.
The headline loss before tax forecast for the year ended Sept. 30 of 815-845 million pounds was worse than the loss of 794 million expected by analysts, Refinitiv Eikon data showed.
That is the first time easyJet, which was founded in 1995, has ever made a full-year loss.
With travel at very low levels, most European airlines are bleeding cash. EasyJet’s larger low-cost rival Ryanair has called this winter a “write-off”.
EasyJet said ongoing travel restrictions meant it would fly just 25% of planned capacity for the rest of 2020, behind Ryanair which is aiming for 40% in October.
At such levels and with no recovery in sight, easyJet’s finances will continue to remain under pressure. CEO Johan Lundgren called on Thursday for Britain to “step up with a bespoke package of measures” to help airlines.
To survive the pandemic so far, easyJet has taken a 600 million pound loan from the government, cut 4,500 jobs, raised 608 million pounds from selling aircraft and tapped shareholders for 419 million pounds. It said it might have to do more.
“EasyJet will continue to review its liquidity position on a regular basis and will continue to assess further funding opportunities, including sale and lease backs, should the need arise,” the airline said in a statement.
Bernstein analyst Daniel Roeska said easyJet was managing the
IPL 2020, CSK vs SRH: Despite Loss, MS Dhoni Wins Internet For His Dedication, Struggle in Dry Conditions
MS Dhoni gave it his all on Friday but could not take Chennai Super Kings over the line against Subrisers Hyderabad in Dubai, losing their third consecutive game. Dhoni – who walked in at No 5, with the side needing over 12 runs per over, the CSK skipper took his time initially. But once he got a hang of the conditions, he took on the bowling but soon started coughing and struggling in the middle. It seemed Dhoni had injured himself and was batting with the pain, but that was not the case. At the post-match presentation, Dhoni clarified that there was no injury but the dry conditions that made his struggle in the middle. “I tried to get as much as time as possible. It is quite dry out here. So, the throat gets dry and you start to cough. When you have legal signs, you can take some time off,” he said after the match. Now ardent fans of Dhoni are hailing his dedication despite the loss.
Hats off to @msdhoni bhai..even in this heat keeping for 20 overs and then running (sprinting for his team) lots n lots of respect..now that’s what we call never ever giving up in toughest moments. Giving all in for his team#respect #cricket pic.twitter.com/LijSsHCUR7
Abhi Rajput (@Abhii2910) October 3, 2020
Kalyan Sagar (@pksagar07) October 3, 2020
Amit Gawande (@AmitThewall) October 3, 2020
Hats off to @msdhoni bhai..even in this heat keeping for 20 overs and then running (sprinting for