The coronavirus pandemic has pushed easyJet (EZJ) into its first ever yearly loss. The budget airline operated 66,533 flights in the last three months, which is less than half the number of journeys it flew in last year’s final quarter. It will run just a quarter of its capacity in the final three months of the calendar year.
The crisis has ravaged the global aviation industry, which has recorded a total loss of $84.3bn (£65bn) so far this year, according to the International Air Transport Association. Airlines including easyJet have delayed the delivery of new aircraft, with easyJet agreeing in April to put back the arrival of 24 new Airbus (Fra:AIR) jets. This slowdown has had a knock-on effect on aerospace manufacturers, with Boeing (US:BOE) earlier this week forecasting an 11 per cent drop in demand for commercial aircraft over the next decade.
easyJet has raised more than £2.4bn in cash via debt and fresh equity this year as it fights to survive the crisis. It reduced its cash burn over its fourth quarter to less than £700m, compared with £774m in the previous three months. Slashing capacity has helped to bring its costs for the year down by more than a third to £3.84bn, while the airline has begun the process of laying off 30 per cent of its staff.
The airline expects to report a pre-tax loss ranging from £815m to £845m on 17 November. Its net debt stood at £1.1bn as of 30 September, up from £326m last year. Unsurprisingly, there will be no dividend.
