EasyJet moves upwards on trading news

1 mins. to read
EasyJet moves upwards on trading news

FTSE 250 budget airline EasyJet (LON:EZJ) saw its share price climb by 1.53% to 531.40p (as of 15:00 BST) following a trading update for the year ended 30th September. The company said that it had carried over nine million passengers during the final quarter of the year with enhanced security measures in place, but overall passenger numbers for the year were down by 50%. Management are focusing on cash generative routes at present in order to minimise cash burn for the first half of the current year, and have raised more than £2.4 billion since the start of the pandemic.

CEO Johan Lundgren commented: “At the beginning of this year, no one could have imagined the impact the pandemic has had on the industry. 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.

“Throughout we have taken a very prudent and conservative approach to capacity and this disciplined approach has seen us deliver a better than expected cash burn outcome in Q4 and will see us continue to focus on profitable flying over the winter season in order to minimise losses and cash burn during the first half of 2021.

“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.

“Aviation continues to face the most severe threat in its history and the UK Government urgently needs to step up with a bespoke package of measures to ensure airlines are able to support economic recovery when it comes.

“easyJet came into this crisis in a very strong position thanks to its strong balance sheet and consistent profitability. This year will be the first time in its history that easyJet has ever made a full year loss“.

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