British low-cost carrier EasyJet has urged the UK Government to provide support measures for airlines amid the Covid-19 pandemic.
The viral outbreak and the impact of the lockdown, protocols and restrictions in place to contain its spread have severely damaged the global aviation industry.
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The call to provide support urgently comes at a time when the company expects to report a full year loss for the first time in its history.
EasyJet has forecasted a group headline loss before tax in the range of £815m to £845m for the financial year 2020.
Between July and September, the airline carried over nine million passengers and spent almost £700m in cash during this period.
easyJet CEO Johan Lundgren said: “Based on current travel restrictions, we expect to fly c.25% of planned capacity for Q1 2021, but we retain the flexibility to ramp up capacity quickly when we see demand return and early booking levels for summer ’21 are in line with previous years.”
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By GlobalDataEasyJet has also launched the previously announced major restructuring and cost-out programme to drive down costs.
As part of this, the company launched an employee consultation process on proposals to reduce staff numbers by up to 30%.
Lundgren added: “easyJet has adapted and risen to the challenges presented by the pandemic by taking decisive actions to minimise losses, bolster liquidity and reduce cash burn, while launching a major restructuring programme, having completed the UK consultation and commenced consultations in a number of key countries.”
