EasyJet to make first annual loss in history of the company

Airline giants EasyJet have been projected to make a loss of between £815 and £845 million in 2020, the first annual loss in the companies history. Due to the severe impact of the coronavirus pandemic and the limitations on international travel, between July and September EasyJet operated at just 38% of their originally scheduled flights, […]

Kaitlyn Maracle
19th October 2020
Airline giants EasyJet have been projected to make a loss of between £815 and £845 million in 2020, the first annual loss in the companies history.

Due to the severe impact of the coronavirus pandemic and the limitations on international travel, between July and September EasyJet operated at just 38% of their originally scheduled flights, and passenger numbers fell by around 50%. It is easy to see that the pandemic has seriously pained the travel sector.

Johan Lundgren, EasyJet's CEO stated that airlines are facing the "most severe threat in its history" and called on the government to further support the industry, with a "bespoke package of measures to ensure airlines are able to support economic recovery when it comes". Many have claimed that the government's furlough scheme hasn't been enough to keep companies like easyJet afloat, as their cash reserves are allegedly running dry.

Government lockdown measures such a the two week isolation period after travelling, and a large number of countries on an exemption list will be among the measures making passengers think twice about their holidays. The Foreign, Commonwealth & Development Office currently advices against "all but essential travel".

EasyJet has recently come under fire for it's cost cutting measures, by reducing their workforce by 30% and closing a number of UK bases, including Newcastle. Other airlines, such as BA and Virgin Atlantic caused controversy by implementing similar measures.

Feature Image: Credit: Wikimedia.com

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