(Alliance News) - easyJet PLC on Tuesday posted its first annual loss in its 25-year history as the coronavirus crisis grounded its fleet and hammered demand for travel.
Shares in easyJet were down 2.2% at 760.20 pence in London on Tuesday. The stock has fallen 47% in the year-to-date and was demoted to the FTSE 250 from FTSE 100 in June.
Total revenue in the financial year to the end of September fell 53% to GBP3.01 billion, with passenger numbers down 50% to 48.1 million. The low-cost airline swung to a pretax loss of GBP1.27 billion from a profit of GBP430 million the year before.
The headline pretax loss was GBP835 million, turning from a GBP427 million profit.
easyJet grounded its entire fleet for 11 weeks during the national lockdowns seen in the spring to early summer, as governments across the globe tried to halt the spread of Covid-19.
"Whilst there was some recovery in demand as travel restrictions eased during the summer, widespread quarantine measures introduced in September once again eroded demand and consumer confidence to travel," the firm noted.
Based on current travel restrictions, easyJet expects to fly no more than 20% of planned capacity for the first quarter of its new financial year.
"At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any further financial guidance for the 2021 financial year," the company said.
The board will not be recommending the payment of a dividend, in light of the loss for the year. In the 2019 financial year, easyJet paid out 43.9 pence.
Johan Lundgren, chief executive, said: "I am immensely proud of the performance of the easyJet team in facing the challenges of 2020. We responded robustly and decisively, minimising losses, reducing cash burn and launching the largest cost out and restructuring programme in our history - all while raising more than GBP3.1 billion in liquidity to date."
easyJet added that, following discussions with the Bank of England and UK Treasury, it is planning to extend its borrowing under the Covid Corporate Financing Facility. The proposed extension would lead to a staggered repayment profile, the firm said, with GBP300 million repaid in March 2021 and GBP300 million in November 2021.
Separately, easyJet said David Robbie will join as a non-executive director on Tuesday. He is currently a non-executive director of packaging group DS Smith PLC and senior independent director at transport operator FirstGroup PLC.
By Lucy Heming; lucyheming@alliancenews.com
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