EasyJet warns of lockdown drag but sees pent-up demand on horizon
Written by Hit Music Radio News on 28/01/2021
EasyJet has warned it expects to fly just 10% of normal services in its current financial quarter as coronavirus crisis restrictions continue to take a toll on travel.
The no-frills carrier told investors, in an update on its performance during the three months to December, that it saw “pent-up demand” ahead after March but, at the same time, admitted customers were leaving it late to book because of COVID-19 uncertainty.
EasyJet refused to give financial guidance for the year for that reason.
It reported that first quarter revenues plunged 88% to £165m in its crucial Christmas earnings season as passenger numbers dived by 87% on the same period last year.
The company said that its cost-cutting efforts, including reduced maintenance and 1,400 job cuts, had reduced its cash burn to £40m per week in a fully grounded scenario.
© Sky News 2020