EasyJet losses deepen as virus impact felt

LONDON, United Kingdom – British low-cost airline EasyJet saw its losses deepen in the 1st half of its fiscal year as coronavirus-related cancellations began to hit operations.

In the 6 months that ended March 31, just after lockdowns were imposed across much of Europe, the airline posted a net loss of 324 million pounds ($403 million, 357 million euros).

Passenger numbers slid 7.4%, mostly due to the pandemic, as the airline said it benefited from less competition due to the bankruptcy of package holiday operator Thomas Cook.

Revenues, however, rose by 1.6% to 2.4 billion pounds.

The effects of the coronavirus will be much more marked in the April through June quarter as airlines across the world have been forced to ground most of their planes due to travel restrictions imposed by governments. 

EasyJet has already said it will have to cut up to 4,500 jobs, or almost a third of its staff, due to the drop in demand for air travel that is expected to persist despite easing travel restrictions.

The airline said it was impossible to provide financial guidance for the rest of this fiscal year in the current context, but said it plans to operate 30% of the flights it had previously planned for the July-September period. – Rappler.com