* Q1 revenues down 88% to 165 mln stg
* Sees Q2 capacity at 10% of 2019 levels, down from 18% in
Q1
* Shares down 1.2%
(Recasts, adds CEO comments)
By Sarah Young
LONDON, Jan 28 (Reuters) - EasyJet urged governments
on Thursday to set out a plan for easing COVID-19 travel
restrictions as the British airline warned its prospects had
worsened for January-March and it could not give forecasts for
the key summer season.
Like all airlines, easyJet has been hoping for a bumper
summer after almost a year of travel curbs, but the beginning of
any recovery continues to be pushed back as new virus variants
sweep Europe and countries remain in lockdown.
Chief executive Johan Lundgren said on Thursday he could not
forecast demand this summer after the company reported an 88%
slump in revenue to 165 million pounds ($225 million) for the
three months ending Dec. 31.
He called on governments to clarify on how and when travel
restrictions would be removed to allow passengers to make
bookings, saying easyJet was confident there was pent up demand
for holidays.
"The key thing is really that they have a plan and as soon
as possible let people know and how they're going to unwind
these things," he told reporters.
Restrictions in Britain, easyJet's home market and its
biggest, tightened 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 that bans holidays.
EasyJet warned it would fly no more than 10% of 2019's
capacity in January-March, down from 18% in September-December.
Its shares fell 1.2% to 705 pence in early trading. But
Goodbody analysts said the update provided comfort on costs and
liquidity.
To cope with the crisis, easyJet has been cutting costs and
said it was making good progress, moving UK-based pilots to
seasonal contracts, signing new ground handling contracts at
major airports and bringing some maintenance in-house.
Its finances were significantly strengthened earlier in
January through a $1.87 billion loan, which analysts said
removed the risk of a second rights issue for now.
($1 = 0.7324 pounds)
(Reporting by Sarah Young; editing by James Davey and Mark
Potter)
easyJet (EZJ)