April 18, 2024

EasyJet upbeat despite first ever loss

By Bev Fearis, published 18/11/20

EasyJet expects to operate no more than a fifth of its usual capacity in the first three months of 2021.

But Chief Executive Johan Lundgren said it would retain the flexibility to rapidly ramp up when demand returns.

He made the statement as easyJet posted a £1.27 billion loss for the year, the first in its 25-year history.

It said passenger numbers and revenues had more than halved for the year up to the end of September in the pandemic, forcing it to undertaken the “largest cost-out programme in its history”.

But in an upbeat statement, easyJet said it believes it will benefit from a switch to low-cost air travel once business travel resumes.

“During the global financial crisis, 56% of corporates moved to value-oriented airlines such as easyJet when purchasing corporate travel products. We expect that any economic weakness following the Covid-19 pandemic will play to easyJet’s strengths and strong value-for-money credentials, resulting in a market share increase,” it said.