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LONDON, Jan 28 (Reuters) - British airline easyJet warned
that it would fly no more than 10% of 2019's capacity in the
Jan-March quarter, down from 18% in the Sept-Dec. quarter, as
new lockdowns and tightening travel restrictions across Europe
prolong the COVID-19 crisis.
Given the limited visibility over the rest of the summer
holiday season, easyJet said it could not provide
financial guidance, after reporting an 88% slump in quarterly
revenues as passenger numbers collapsed 87% in the three months
ended Dec.
The crisis in easyJet's home market of the UK, its biggest,
deepened on Wednesday when the government brought in new
measures to crack down on travel, including requiring passengers
to justify why they are leaving the country.
Pre-departure COVID-19 testing and quarantine are already in
place in addition to a lockdown which bans holidays.
To survive with minimal revenues, which came in at 165
million pounds ($225.3 million) for the last quarter, easyJet
has been cutting costs.
It said the majority of its UK-based pilots now have
seasonal contracts, it signed new ground handling contracts at
its major airports and has brought some maintenance in house.
As a result of these moves, cash burn is estimated to fall
to 40 million pounds per week in a fully grounded scenario.
The airline's finances were significantly strengthened
earlier in January, through a new five-year loan facility of
$1.87 billion, backed by a partial guarantee from the UK, which
analysts said removed the risk of a second rights issue for now.
To survive the pandemic so far, easyJet has already tapped
shareholders for cash, said it would axe 30% of its staff, and
sold dozens of its aircraft.
($1 = 0.7324 pounds)
(Reporting by Sarah Young; editing by James Davey)
