EasyJet cuts more
flights and sells planes after new Covid controls
Airline expects to
fly no more than 20% of planned capacity for rest of 2020
EasyJet is cutting
its flight schedule further after the introduction of new lockdown measures
in the UK and mainland Europe, saying it will only run a maximum of 20% of
planned flights for the rest of the year.
The airline said it
was scaling back days after the UK prime minister, Boris Johnson, announced
fresh Covid-19 restrictions that ban residents in England from holidaying
abroad or within the UK until 2 December. EasyJet said similar lockdown
measures in Germany and France were also affecting flight plans.
The airline’s
financial year begins in October and it said: “EasyJet now expects to fly
no more than 20% of planned capacity for the first quarter.
“We remain focused
on cash generative flying over the winter season in order to minimise
losses during the first half and retain the flexibility to ramp capacity
back up quickly when we see demand return.”
The announcement
comes only weeks after easyJet said it would be cutting capacity to 25% for
the rest of 2020. The airline has taken more drastic measures than the
rival budget airline Ryanair, which recently said it would run about 40% of
its planned capacity from November to March.
EasyJet also
announced it had raised almost £131m through the sale and leaseback of 11
of its A320 planes. After the latest deal, easyJet now owns only 41%, or
141 planes, of its fleet.
The airline has been
trying to raise extra cash as a second wave of coronavirus cases and
resulting lockdowns threaten to put extra strain on its finances. The
airline said last month it was likely to report a loss in the range of
£815m to £845m for the year to September – its first annual loss in the
25-year history of the airline.
“EasyJet will
continue to review its liquidity position on a regular basis and will
continue to assess further funding options, including those that exist in
the robust sale and leaseback market,” the company said.
British Airways told
staff on Thursday that it would make further cuts to schedules over the
next month and furlough more staff. It will suspend operations at Gatwick,
and expects to operate a skeleton service to bring back passengers already
abroad, for permitted essential travel and for freight.
The UK airline
industry has called for more assistance since the ban on holidays was
announced, although early suggestions from government that it could be
given a bespoke rescue package have not come to fruition. A taskforce
chaired by the transport secretary, Grant Shapps, was expected to report to
the prime minister early this month.
Airlines hope it
will heed their calls and recommend pre-departure testing and rapid airport
testing as a way of reducing or eliminating the quarantine period, which
means most international arrivals or returning passengers must self-isolate
for 14 days. Surveys by the industry body Iata suggest the quarantine rules
are almost as big a deterrent as an outright travel ban.
The Department for
Transport said Shapps’ taskforce was “working at pace” to find a solution
this week.
|
Ingen kommentarer:
Legg inn en kommentar
Merk: Bare medlemmer av denne bloggen kan legge inn en kommentar.