EasyJet Issues Trading Statement For Quarter Ended June 30
EasyJet has issued a trading statement for the quarter that ended on June 30, 2020, revealing that its total group revenue for the quarter amounted to £7 million. EasyJet's fleet was fully grounded...
EasyJet has issued a trading statement for the quarter that ended on June 30, 2020, revealing that its total group revenue for the quarter amounted to £7 million.
EasyJet's fleet was fully grounded between March 30 and June 15 due to the COVID-19 crisis. Between June 15 and June 30, the airline carried 117,000 passengers with a total capacity of 132,000 seats. EasyJet's initial schedule comprised only 10 lines of flying and delivered a load factor of 88.9%.
The airline stated, "We have now completed more than one month of restart operations and are seeing encouraging performance across the network with a continued focus to undertake only profitable flying. In July, easyJet flew just over two million passengers with a load factor of 84%."
Headline Costs And Cash Burn
EasyJet's total headline costs for the quarter that ended on June 30, 2020, declined by 79% year-on-year to £332.1 million. Meanwhile, with a total cash burn of £774 million, the airline's operational cost cash burn during the quarter was lower than the previously guided £30 million to £40 million per week.
Liquidity And Net Debt
Speaking about liquidity, easyJet stated, "During the quarter, 9.99% of share capital was issued, following a share placing on 25 June. At the general meeting held on 14 July, approval was granted for the issue of a further 5%. Gross proceeds raised on the total 14.99% issuance was £419 million. This brings the total liquidity raised to date since the beginning of the COVID-19 pandemic to over £2.2 billion."
Additionally, as of June 30, 2020, the airline's net debt position was £835 million.
Based on current travel restrictions in the markets in which it operates, easyJet expects to fly approximately 40% of its planned capacity during the current quarter. This compares to the 30% highlighted previously, and, based on the current schedule, the airline expects to experience a smaller loss during the current quarter than it experienced during the quarter that ended on June 30.
EasyJet said, "At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any other financial guidance for the remainder of the 2020 financial year."
EasyJet CEO Johan Lundgren stated, "I am really encouraged that we have seen higher than expected levels of demand with load factor of 84% in July, with destinations like Faro and Nice remaining popular with customers.
"Our bookings for the remainder of the summer are performing better than expected, and, as a result, we have decided to expand our schedule over the fourth quarter to fly c.40% of capacity."
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