Easyjet faces £380m coronavirus loss

posted on 16th April 2020 by Eddie Saunders
Easyjet faces £380m coronavirus loss

Easyjet has announced today that it has raised £1.8bn in extra cash to help it survive the shutdown due to the covid-19 epidemic.

But it looks to face a first-half loss of up to £380m due to travel bans it warned.

The airline said today that it had signed two term loans totalling around £400m which are secured against aircraft and mature in 2022.

We remain focused on doing what is right for the company for its long term health and to ensure we are in a good position to resume flying when the pandemic is over. While the vast majority of our people are not able to work at this time, there is a small number working tirelessly to help our customers, and to plan for our return to the skies, whenever that might be,” Johan Lundgren, Easyet’s chief executive, said.

Helal Miah, investment research analyst at the Share Centre, said: “The carrier is demonstrating its survivability to investors in these extreme circumstances and we’re somewhat assured that it’s a more viable airline than most others. However, despite this morning’s rally in the shares, it’s still a long way off for the pre-lockdown levels.

While it should come out relatively well on the other side, the question is how the economy shapes up afterwards and whether spending on travel resumes to pre-lockdown levels or not.”