Easyjet swings to red and posts £1.2bn loss

Easyjet (LON: EZJ) has posted its first-ever full-year loss, sinking £1.2bn into the red.

For the year ending 30 September, the budget airline saw passenger numbers half from 96.1m to 48.1m amid travel restrictions and social distancing measures.

Easyjet also said that it will only fly at 20% capacity for the first quarter of the next financial year.

Revenue 52.9% to £3bn, which was down from last year’s revenue of £6.4bn.

Commenting on the results, chief executive Johan Lundgren said:

“I am immensely proud of the performance of the easyJet team in facing the challenges of 2020. We responded robustly and decisively, minimising losses, reducing cash burn and launching the largest Cost Out and restructuring programme in our history – all while raising more than £3.1 billion in liquidity to date.

“easyJet has not only withstood the impact of the pandemic, but now has an unparalleled foundation upon which to emerge strongly from the crisis. Our unmatched short haul network and trusted brand will see customers choose easyJet when returning to the skies.

“While we expect to fly no more than 20% of planned capacity for Q1 2021, maintaining our disciplined approach to cash generative flying over the winter, we retain the flexibility to rapidly ramp up when demand returns.

“We know our customers want to fly with us and underlying demand is strong, as evidenced by the 900% increase in sales in the days following the lifting of quarantine for the Canary Islands in October. We responded with agility adding 180,000 seats within 24 hours to harness the demand.”

Since the vaccine news, shares in Easyjet have surged and bookings have grown by 50% since the news.

Easyjet shares (LON: EZJ) are down 2.57% at 757,60 (0817GMT). Over the past month, shares have increased from lows of 494,40.