EasyJet warned of heavy losses and cuts in more flights

EasyJet has warned of losses of more than  800 million this year and expects to fly at only 25% of its normal capacity by next year.

 

EasyJet warned of heavy losses and cuts in more flights

Although the airline said in a trade update that it has taken drastic action to reduce costs, the warning highlights the ongoing challenges for the industry.

 

Sky News reports that EasyJet has indicated to the government that it may need more financial support.

 

The trade statement did not mention the need for state assistance.

 

However, Chief Executive John Lindgren said: "Aviation is facing the most serious threat in its history and the UK government needs to take immediate action with a besieged package of measures to ensure that airlines Lines may be able to help economic recovery.”

 

The airline says it expects to sink its first tax loss between 815 million and 845 million this fiscal year, worse than analysts had predicted a loss of 794 million. This will be the first time in EasyJet's 25-year history that it has not made” an annual profit.

 

EasyJet said in a statement that it would "continue to review its liquidity position on a regular basis and, if necessary, continue to review further funding opportunities, including sales and leasebacks."

 

The carrier has already borrowed million from the government, cut 4,500 jobs, sold aircraft and sold 600 million to shareholders for 419 million.

 

The airline will officially report its annual results on November 17.

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