British Airways EasyJet said it anticipates as much as $1.1 billion (845 million pounds) annual loss as the pandemic-hit flying giant has been operating only 25% capacity, according to press release. EasyJet is managing the downturn well but needs more financial support from the state. Headline loss before tax for year ending is worse than analysts’ $ 794 million expectations.
- With no recovery in sight, EasyJet’s finances to continue under pressure-CEO, Johan Lundgren
- EasyJet will continue reviewing its liquidity position and assess further funding opportunities, including sales and leasebacks.
- Company needs resumption of air travel to recover for summer 2021, and failure could raise concerns of further capital raise.
- Company focused on flying profitably to conserve cash in Q4.
- EasyJet has taken a 600 million pound state loan, cut 4,500 jobs, raised 608 million pounds from aircraft sales and 419 million pounds from shareholders to survive the pandemic.
EasyJet shares were down 0.9% at following earnings warning and have lost 62% cumulatively in 2020. EZJ: LON is down 0.15%