EasyJet Cuts Capacity
British airline easyJet is reducing its flight schedule due to demand for its flights being negatively impacted by frequent changes in UK government restrictions on travel. The airline said that it...
British airline easyJet is reducing its flight schedule due to demand for its flights being negatively impacted by frequent changes in UK government restrictions on travel.
The airline said that it expects to fly slightly less than the previously planned 40% of capacity in the three months that end on September 30, its fiscal fourth quarter, and that it cannot give earnings guidance for either this or the next fiscal year.
England has imposed a 14-day quarantine on arrivals from countries including France and Spain, and it added seven Greek islands to the list on Monday September 7. Other countries in the United Kingdom have taken similar measures.
"Following the imposition of additional quarantine restrictions to seven Greek Islands and the continued uncertainty this brings for customers, demand is now likely to be further impacted and therefore lower than previously anticipated," easyJet CEO Johan Lundgren said.
"We know our customers are as frustrated as we are with the unpredictable travel and quarantine restrictions," he added.
Shares in easyJet, which have lost 55% of their value since the start of 2020, were down 6% at 591 pence in early deals on Tuesday September 8.
Lundgren said that it is difficult to overstate the impact on the industry of the COVID-19 pandemic and associated government policies.
He said that the aviation sector needs specific support, including the removal of air passenger duty for at least 12 months and the alleviation of air traffic control charges.
Job Cuts And Bases Closures
EasyJet is cutting 4,500 jobs across Europe and is closing its bases at London Stansted, London Southend and Newcastle airports as a result of the pandemic.