Easyjet Considering Options To Bolster Its Finances
EasyJet is considering options to bolster its finances, and is not against state support to help the airline get through the coronavirus pandemic, its chief executive, Johan Lundgren, has said. "We...
EasyJet is considering options to bolster its finances, and is not against state support to help the airline get through the coronavirus pandemic, its chief executive, Johan Lundgren, has said.
"We have a number of options of financing. We are reviewing that all the time," Lundgren told Reuters in an interview.
"I am not against state aid," he said. "It is very clear that the crisis has been to that extent that you can't expect the industry and its players to cope with it all by themselves."
With travel across Europe at very low levels, most airlines are bleeding cash, but easyJet's finances have come under particular scrutiny amid media reports that it has signalled to the UK government that it may need more financial support.
Annual Loss Warning, Survival Measures And 25% Capacity
The airline warned in October that its annual loss for the 12 months that ended in September could be as much as £845 million. To survive the impact of the pandemic, it has raised more than £900 million from the sale and leaseback of aircraft, taken a £600 million loan from the government, cut 4,500 jobs and tapped shareholders for £419 million.
Tightening coronavirus restrictions across Europe mean that easyJet, which before the pandemic was the fifth biggest airline in Europe by passenger numbers, is planning to fly just 25% of capacity for the rest of 2020.