EasyJet Reports First-Ever Annual Loss

EasyJet, the UK-based budget airline, said its revenue fell by nearly 53% for the full year to end-September as the coronavirus pandemic continues to create havoc on the airline industry. 

Revenue was reported at £3 billion compared to £6.38 billion from a year ago.  EasyJet said that its capacity decreased by 47.5% while the carrier expects to fly only 20% of its planned flights in the final quarter of the year. 

“I am immensely proud of the performance of the easyJet team in facing the challenges of 2020. We responded robustly and decisively, minimising losses, reducing cash burn and launching the largest Cost Out and restructuring programme in our history – all while raising more than £3.1 billion in liquidity to date,” Johan Lundgren, Chief Executive of EasyJet, said in the statement. 

Airlines criticized governments of Western Europe for fresh travel bans and lockdown measures. EasyJet, in particular, saw its sales explode by 876% in five days after the British government announced that mandatory quarantine for travellers arriving from the Canary Islands is not required.

“The longer these travel restrictions are in place, it actually increases pent-up demand,” he added.

Shares of EasyJet are down 3.3% in London today, just a day after logging the 5-month high on positive vaccine news from Moderna. 

Similarly, Emirates announced a mouth-watering loss of $3.4 billion for six months to end September. Revenue crashed by about 75% to $3.2 billion while the number of passengers collapsed by 95% compared to the same period a year ago. 

“We started our current fiscal year in the midst of a global blockade when air passenger traffic was literally at a standstill. In this unprecedented situation for the aviation and travel industry, the Emirates Group recorded a half-year loss for the first time in over 30 years,” said Sheikh Ahmed Bin Saeed Al Maktoum, CEO of Emirates Airline.

Emirates were previously forced to dismiss around 9,000 staff to limit losses. 

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