EasyJet closed financial year 2020 with a tax loss of 1.3 billion pounds (1.4 billion euros). This represents the first annual loss for the British low-coster ever. The loss is not surprising as the aviation sector is faced with travel restrictions and the growing demand for tickets as a result of the COVID-19 crisis.
EasyJet had already warned about deep red numbers. The company, one of the largest users of Schiphol Airport, saw its turnover in the financial year running until September well halved to just over GBP 3 billion. The passenger flow also dried up by 50% to 48.1 million passengers.
Nor is the company’s prospects rosy. For the last months of 2020, the first quarter of the new financial year, easyJet does not expect to operate more than 20% of its scheduled flights. But according to chairman Johan Lundgren, the company is well positioned to start operations again soon after the crisis.
In order to cope with the crisis easyJet has achieved significant cost savings. In addition, the company has raised the cash with the sale of aircraft which subsequently rents it back. All in all, at the end of September, the low-coster had GBP 2.3 billion of liquidity on his hands.
Because of the uncertainties, the company does not challenge forecasts for the new financial year. EasyJet expects to make some £ 600 million in investment despite the crisis.
Furthermore, the company says that it is ready for all the results of the Brexit consultation. The company has put itself on the map pan-European by having certified bases in Austria and Switzerland in addition to the United Kingdom.