EasyJet warns of heavy losses and continuing flight cuts

EasyJet has warned it faces losses of more than 800m pounds this year and that it expects to fly at just 25% of normal capacity into next year.

Although the airline said in a trading update it had taken tough action to cut costs, the warning underlines the continuing challenges for the industry.

This year’s annual loss will be the first in EasyJet’s 25-year history.

easyJet has signaled to the government that it may need more financial support.

There was no reference about needing state aid in the trading statement.

However, chief executive Johan Lundgren said:  “Aviation continues to face the most severe threat in its history and the UK government urgently needs to step up with a bespoke package of measures to ensure airlines are able to support economic recovery when it comes.”

The airline said it expected to sink into a pre-tax loss of between 815m pounds and 845m pounds in the current financial year, which is worse than analysts’ forecasts of a 794m loss.

The carrier has already taken a 600m pounds loan from the government, cut 4,500 jobs, raised 608m pounds from selling aircraft and tapped shareholders for 419m.


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